Micron Technology (NASDAQ: MU) stock rose in pre-market trading Tuesday after Rosenblatt reaffirmed a buy rating, citing AI as a growth catalyst.
Rosenblatt has reiterated its Buy rating on Micron Technology shares (NASDAQ: MU) while maintaining a steady price target of $225.00. The firm’s optimism stems from expectations of robust financial performance driven by advancements in artificial intelligence (AI) and high-bandwidth memory (HBM) technologies.
Rosenblatt forecasts that Micron will deliver better-than-expected results and raise future guidance. The optimism is based on what the firm calls a highly significant memory cycle in history, fueled by increasing demand for memory in AI applications. The growth in AI usage is directly correlated with memory consumption, bolstering Micron’s prospects.
The firm highlights a new wave of HBM production, which is expected to tighten supply in traditional DRAM markets. Analysts anticipate this shift will support prices and enhance Micron’s revenue streams in the coming years.
Rosenblatt emphasizes that disciplined capital expenditures in the memory sector will further support this trend, effectively managing supply dynamics and potentially stabilizing prices. Analysts view this strategic approach as a positive factor for the whole industry.
Analysts at Rosenblatt anticipate that the current trajectory of increasing memory demand, especially driven by AI and HBM, will likely continue into the 2026/27 period. They anticipate this prolonged growth phase due to ongoing technological advancements and the expanding integration of AI across diverse industries.
Micron Technology, a key player in the semiconductor industry, will benefit from these trends, with increasing demand for its memory solutions aligned with the expanding applications of AI and HBM. Rosenblatt’s reaffirmed price target of $225.00 underscores their confidence in Micron’s ability to capitalize on these industry dynamics.
Micron Technology (NASDAQ: MU) Stock Reaction
As of 05:09 a.m. (Eastern Time) Tuesday, MU stock traded at $141.40, marking a 1.72% increase compared to the previous trading session.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
