Why Micron Technology Stock Is a “Buy” According to William Blair
Micron technology stock received a "buy" rating from one investment group and has seen tremendous growth recently.
Quick overview
- Micron Technology's stock has jumped 8.3% this week, prompting a 'buy' rating from William Blair with a price target of $540.
- The company is heavily invested in AI memory supply, which is experiencing significant growth and demand.
- Micron's products are in such high demand that they can only meet about 55% of their customers' medium-term needs.
- With plans for new facilities and an estimated 70% earnings growth over the next five years, Micron is positioned for continued success.
After jumping 8.3% this week, Micron Technology (MU) is a hot tech stock, and the William Blair investment banking group has given it a “buy” rating.
Analyst Sebastian Naji from William Blair says that investors should be buying Micron Technology stock right now. He set the price target to $540, and the stock is currently trading at $490 per share.
The stock rose another 0.65% on Thursday as the market made wide gains from news that President Donald Trump would not be instituting new tariffs on European trade partners in February. The Dow climbed 0.8%, and the Nasdaq gained 0.98% after even more significant gains the previous day.
MU Is a Stock with Tremendous Growth Potential
Many investors know the major AI-related stocks like Nvidia (NVDA), Advanced Micro Devices (AMD, and Taiwan Semiconductors (TSM), but Micron Technology could be undervalued according to some analysts. The stock has gained 250% in the past 12 months and yet still has room to grow.
The company is heavily invested in AI memory supply, which is a hot niche at the moment that has considerable growth potential. The MU stock price is seen as far below its true market value since the company has a growing global business that makes NAND flash memory chips and dynamic random access memory. These are used for processing and data storage for artificial intelligence services.
Micron Technology’s products are so in demand that the company cannot keep up with all the orders they are receiving. One estimate says that they have capacity for about 55% of their customers’ medium-term demand, and they need to build larger facilities to accommodate the workload. Even if the company does set up a new clean room space in line with its 2027 plans, the demand might have increased so much by then that they will need to expand further.
Demand for memory is skyrocketing, and Micron Technology has an excellent position with the market that makes them one of the best companies to meet that demand. DRAM shortages already plague the industry and are expected to continue to do so, putting Micron’s services in high demand at a time of significant growth for the AI industry.
Micron started building new facilities in several areas, including a megafab location in New York. This should help them meet rising demand and continue to take a large portion of the market share. Despite incredible growth in recent months, the stock could still climb much higher, and it is obvious why it has been labeled as a stock to buy at this moment. Earnings forecasts for the company estimate that they will grow about 70% over the next five years.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save