Rosenblatt analysts maintained a Buy rating and target price of $140 on Micron Technology (NASDAQ:MU) stock ahead of the chipmaker’s fiscal Q2 2024 earnings report.
“We expect Micron to deliver a beat and raise on Wednesday, March 20th, on continued AI-driven segment demand, a bottoming in the broader markets (recovery 2HC24) amid a disciplined supply memory posture by the industry,” analysts wrote in the note.
Entering a crucial memory cycle, Nvidia’s (NVDA) GPU Technology Conference (GTC) is expected to highlight the narrative that AI compute platforms require significant DRAM and HBM to scale, analysts said.
A key focus is Micron’s leadership in HBM3E design, offering unmatched performance and efficiency, poised to secure double-digit market share. Micron’s HBM3E is notably gaining exclusive "sockets" in this new wave of accelerator product launches.
“Micron remains our top cyclical pick in the current memory cycle, which we believe will be one of the biggest in history, consistent with our Mother of All Cycles (MOAC) secular view,” analysts wrote.
Meanwhile, Barclays analysts also voiced a bullish stance ahead of MU’s print, expecting “another strong beat and raise” from the semiconductor manufacturer.
The analysts lifted estimates for calendar years 2024 and 2025 as well as the target price on the stock from $95 to $120.