HSBC Initiates Micron (MU) With Buy Rating and $330 Price Target

“Micron’s stock terms is up 172% [year-to-date], outperforming the NASDAQ (up 22%) but precocious the stock terms has been subdued arsenic the marketplace appears overly acrophobic astir fiscal risks from [neo-cloud work providers], and the Stargate Project; we judge that [cloud work providers] which put with their ain EBITDA volition support their beardown capex implementation. We spot it arsenic a bully clip to accumulate the stock.” – HSBC expert Ricky Seo wrote successful a enactment to clients.

Seo anticipates Micron to payment from a 4-to-5-year-long upcycle alternatively of the 2-3 twelvemonth rhythm that it has historically enjoyed. This rhythm volition beryllium boosted by factors specified arsenic incremental AI spending from neo-cloud work providers, Stargate Project and the large unreality work providers. Meanwhile, constricted capableness should curb immoderate output growth.

DRAM and NAND markets are besides anticipated to grow, with Micron being a premier beneficiary.

“We expect the DRAM and NAND markets to turn 69% and 62% [year-over-year] respectively, successful 2026e; Micron volition beryllium 1 of the cardinal beneficiaries.”

Micron Technology, Inc. (NASDAQ:MU) develops and sells representation and retention products for information centers, mobile devices, and assorted industries worldwide.

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Disclosure: None.