"The chipmaker's pivotal role in supplying high-bandwidth memory (HBM) and storage solutions for AI data centers positions it for explosive growth without the hype. While Nvidia dominates GPUs, Micron fuels the backbone DRAM and NAND chips essential for AI training and inference, where data volume is exploding. This under-the-radar status has kept its valuation attractive, with a forward P/E of just 12 and a price-to-earnings-to-growth (PEG) ratio of a minuscule 0.22, signaling significant undervaluation amid AI's boom."
"Today, that sleeper is stirring vigorously. Shares surged over 10% in morning trading after Citi analyst Christopher Danely hiked his price target to $175 from $150 while reaffirming his Buy rating. Danely anticipates Micron will deliver in-line quarterly results but offer up guidance far exceeding consensus for Q1, propelled by elevated DRAM and NAND sales volumes and pricing power. This optimism stems from robust AI-driven demand in data centers,"
Micron Technology has emerged as a major supplier of high-bandwidth memory and storage for AI data centers, driving a sharp increase in data-center revenue. Data-center revenue has surged, and demand for DRAM and NAND is lifting pricing power and sales volumes. Valuation metrics remain low, with a forward P/E near 12 and a PEG around 0.22, implying perceived undervaluation. A Citi analyst raised the price target to $175 and expects in-line quarterly results with guidance exceeding consensus, reflecting confidence that AI-driven demand will sustain Micron's expansion and improve earnings prospects.
Read at 247wallst.com
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