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

Micron Technology’s HBM market is projected to grow at a compound annual growth rate of approximately 65% over three years, reaching $17.5 billion by 2026. This growth has led Mizuho to raise its stock price target to $130, up from the previous $124. The firm’s updated forecast for fiscal year 2024 considers new tax assumptions aligning with Micron’s guidance and the anticipated growth in AI and HBM sectors.

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 analyst points out several key factors influencing the revised target, including HBM pricing being 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.

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 information was generated with AI support and reviewed by an editor.

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