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

Micron Technology: Navigating the Highly Competitive HBM Market with Strong Demand and Innovative Offerings

Micron Technology recently received a boost from Mizuho, which raised its stock price target to $130, up from the previous $124. The firm also maintained its Buy rating on the stock while updating its forecast for fiscal year 2024.

The analyst noted several key factors influencing the revised target. They expect HBM pricing to be established for 2024 but may see 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 the HBM market to 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. This has allowed Micron to maintain its position as a leader in this space despite intense competition from other players like Samsung and AMD.

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