Investing.com — Micron Technology (NASDAQ:MU) stock rose 3.6% in pre-market trading on Thursday after Citi analyst Christopher Danely raised his price target on the memory chip maker to $175 from $150 while maintaining a Buy rating.
The new target suggests 25% upside potential and comes ahead of Micron’s fiscal fourth quarter earnings report scheduled for September 23. Danely expects Micron to report in-line results but guide well above consensus for the first quarter, driven by higher DRAM and NAND sales and pricing.
“We believe the continued memory upturn is being driven by limited production and better than expected demand, particularly from the data center end market,” Danely wrote in a note to clients. The analyst’s fiscal 2026 earnings per share estimate is 26% above consensus.
The positive outlook comes as demand from the artificial intelligence sector has reportedly increased sharply. Morgan Stanley also highlighted NAND’s growing importance in AI applications, estimating that the AI NAND market will account for 34% of the global NAND market by 2029, adding an incremental $29 billion to the total addressable market.
Micron, one of the main global NAND suppliers alongside Samsung, SK Hynix, Kioxia, and Western Digital, has been gaining market share in enterprise solid-state drives (eSSD) in recent years. According to Morgan Stanley, Micron’s revenue share in this segment is now approaching that of the combined SK hynix/Solidigm, despite the company’s historically smaller scale in NAND production.
Related articles
Micron stock rises as Citi boosts price target ahead of earnings
Silver: Global Markets Show Signs of a Gold-Like Bullish Run With $44 in Sight
Apollo economist warns: AI bubble now bigger than 1990s tech mania
Source link
