• Mon. May 20th, 2024

Mizuho Boosts Micron Technology’s Stock Price Target to $130, Reaffirms Buy Rating and HBM Market Projections

BySamantha Jones

Mar 25, 2024
Investing.com raises Micron Technology stock price target to $130 on the back of AI and HBM growth

Micron Technology recently received a boost from Mizuho, which raised its stock price target to $130 while maintaining its Buy rating on the company. The increase in target comes after Mizuho made new tax assumptions that align with Micron’s guidance and the expected growth in the AI and High Bandwidth Memory (HBM) sectors.

The analyst behind the move cited several key factors that influenced their revised target. They expect HBM pricing to be established by 2024 but may see an upside toward the end of the year and early 2025. Additionally, they view the introduction of a 12-Layer 36Gb HBM for a 288GB stack in the first half of 2025 as a significant catalyst for growth.

Mizuho estimates that the HBM market will be worth around $9 billion in 2024 and $13 billion in 2025, with potential for growth 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 this market is highlighted by its HBM3E offering, which delivers comparable performance to competitors but with lower power consumption (around 30% less) and no extreme ultraviolet (EUV) lithography, resulting in reduced costs.

In conclusion, Mizuho has reaffirmed its Buy rating on Micron Technology while increasing its stock price target to $130. These changes were made based on new tax assumptions and projected growth in AI and HBM sectors, as well as insights into Micron’s competitive advantage in this market.

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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