Micron Technology (NASDAQ: MU) stock rose in pre-market trading Wednesday as JP Morgan forecasts a potential $200 peak.
Analysts at JPMorgan have expressed a bullish outlook on Micron (NASDAQ: MU) despite challenges like the early April Taiwan Earthquake impacting current quarter revenues.
In a recent note, JPMorgan forecasts significant growth for Micron, citing factors such as a strong High Bandwidth Memory (HBM) ramp for Nvidia’s new GPUs and sustained price increases for DRAM and NAND memory. The firm anticipates Micron’s gross margins to reach the 34%-35% range, beating expectations.
JPMorgan underscores that the memory industry is in the early stages of a cyclical up-cycle, expecting continued positive revisions throughout 2024 and 2025. In addition, the firm highlighted the significant growth potential of HBM, labeling it as the “fastest-growing new memory driver in the history of the memory market.”
This unprecedented growth in HBM demand has led JPMorgan to suggest a potential peak price for Micron stock approaching $200.
While some investors remain cautious due to Micron’s high valuation, JPMorgan believes that the positive earnings revisions support confidence in the stock. The firm acknowledges concerns about lower HBM yields potentially impacting Q3 margins but maintains a bullish outlook based on recent company guidance.
Overall, JPMorgan has awarded Micron a strong positioning score of 8 (out of 10) anticipating a potential 13% increase in the stock price.
Micron (NASDAQ: MU) Stock Movement
As of 08:56 a.m. (Eastern Time) Wednesday, MU stock traded at $143.75, marking a 1.86% 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.
