Micron (NASDAQ:MU) shares rose ahead of Monday's market open after analysts at Baird and Citi lifted their respective price targets on the AI memory chipmaker.
The moves come prior to Micron’s results for the fiscal Q4 2024 on June 26.
Citi, which rates MU stock as a Top Pick, expects the company to report better-than-expected results and guidance “given the DRAM upturn and Micron’s increasing AI memory exposure.”
“We are raising estimates and price target from $150 to $175 and we believe Micron should continue to trade at a premium to its historical range given AI exposure,” analysts added.
The Wall Street giant foresees $700 million in Micron’s AI high-bandwidth memory (HBM) revenue in calendar year 2024 and $3 billion in 2025.
Simultaneously, analysts at Baird raised their price objective on MU shares from $150 to $172, saying they “continue to see meaningful upside opportunities” as DRAM pricing remains robust.
“HBM is reminiscent of the early days of NAND flash, with similar bit CAGR and an even-higher gross margin profile potential. Near- term, memory pricing trends remain strong with continued price increases expected throughout the year,” the investment firm wrote.