Investing.com raises Micron Technology stock price target to $130 on the back of AI and HBM growth

Mizuho Bumps Up Micron Tech Stock Price Target to $130 as HBM Market Continues to Boom

Micron Technology recently received a boost from Mizuho, which raised its stock price target to $130, up from the previous $124. Despite the increase, Mizuho has maintained its Buy rating on the stock. The firm’s updated forecast for fiscal year 2024 takes into account new tax assumptions that align with Micron’s guidance and the anticipated growth in AI and High Bandwidth Memory (HBM) sectors.

The analyst pointed out several key factors influencing the revised target, including HBM pricing being established for 2024 but potentially seeing an upside toward the end of the year and early 2025. Additionally, the introduction of a 12-Layer 36Gb HBM for a 288GB stack in the first half of 2025 is seen as a significant catalyst.

Mizuho estimates that the HBM market will be worth around $9 billion in 2024 and $13 billion in 2025, potentially increasing to $10-11 billion and $14-15 billion, respectively. The market is projected to grow at a compound annual growth rate of approximately 65% over three years, reaching $17.5 billion by 2026.

Micron’s competitive advantage in the HBM market is highlighted due to its HBM3E offering delivering comparable performance to competitors but with lower power consumption (around 30% less) and no extreme ultraviolet (EUV) lithography, resulting in reduced costs.

In conclusion, Mizuho reaffirms its Buy rating and increases the stock price target to $130 with adjustments made to reflect these insights. This information was generated with AI support and reviewed by an editor.

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