On Monday, Rosenblatt Securities sustained a bullish stance on Micron Technology (NASDAQ:MU) shares, reiterating a Buy rating and a $140.00 price target.
The firm anticipates that Micron will surpass expectations and increase guidance this Wednesday, March 20th, fueled by persistent demand from AI-driven market segments and a recovery in broader markets anticipated in the second half of 2024. The industry's disciplined approach to memory supply is also seen as a contributing factor to the positive outlook.
"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," said the analyst.
The upcoming Nvidia (NASDAQ:NVDA) GPU Technology Conference (GTC) is expected to highlight the importance of DRAM content and high-performance HBM for AI compute platforms. Micron's advancements in HBM3E technology are particularly noteworthy, with performance and efficiency specifications believed to be superior to those of competitors. This technological edge is projected to secure Micron a double-digit market share.
Rosenblatt has identified Micron's design momentum in HBM3E as a key theme to observe, as the company is reportedly capturing exclusive new accelerator product ramp "sockets".
InvestingPro Insights
As Micron Technology (MU) approaches its earnings date on March 20th, Rosenblatt Securities maintains a bullish outlook, emphasizing the company's potential to exceed expectations. Supporting this view, InvestingPro Tips highlight Micron's track record of raising its dividend for three consecutive years and analysts' anticipation of sales growth in the current year. These factors underscore the company's financial health and market confidence.
In the context of the article's focus on technological advancements and market share gains, Micron's significant role in the Semiconductors & Semiconductor Equipment industry, as noted by InvestingPro Tips, is particularly relevant. Additionally, Micron’s strong return over the last year and the large price uptick over the last six months align with the positive sentiment expressed by Rosenblatt Securities.
On the data front, InvestingPro Data shows that Micron's Market Cap stands at a robust 102.94B USD, with a notable 1 Month Price Total Return of 17.3%. Despite a challenging gross profit margin of -14.49% over the last twelve months as of Q1 2024, the company's liquidity is highlighted by its ability to cover short-term obligations with its liquid assets. This financial resilience could be a key factor as Micron navigates the anticipated recovery in broader markets and the AI-driven demand surge.
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