gorodenkoff
- Micron Technology is poised to benefit from the growing demand for AI infrastructure on top of the upswing in legacy servers.
- The company’s advanced memory and storage chips are in high demand, with 2024 HBM chips already sold out and 2025 nearing capacity.
- HBM3E is expected to start being accretive in e2h24 as manufacturing scales. This growth should persist as more firms adopt AI infrastructure in the years ahead.
Micron Technology (NASDAQ:MU) is currently in the beginning phases of the next megatrend in AI infrastructure that is anticipated to experience significant growth over the coming years. As the supply capacity for GPUs loosens going into CY25, I anticipate strong tailwinds for Micron’s chips. 2024 HBM chips are already sold out and 2025 are nearing capacity. I believe this strength in demand will be strongly reflected in pricing strength for NAND and DRAM and will create a strong tailwind for revenue growth and margin expansion. I provide MU shares a BUY recommendation with a price target of $197.77/share at eFY25 EV/aEBITDA.
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