Micron (NASDAQ:MU) got a boost on Friday after 5-star Citi analyst, Christopher Danely, reiterated a Buy on the stock as he expects the chip major to benefit from the AI boom. The analyst anticipates that MU could have an edge due to rising dynamic random access memory (DRAM) prices. Moreover, the analyst expects that the company could see a big jump in revenue as high-bandwidth memory is used for AI applications.
Danely has projected that Micron is expected to generate $700 million in high-bandwidth memory sales this year and up to $3 billion in 2025. The analyst added that the company’s high-bandwidth memory chips are already in use in Nvidia’s (NASDAQ:NVDA) Graphics Processing Units (GPUs), which supports his optimistic revenue forecasts.
The analyst has a price target of $150 on the stock, implying an upside potential of 21% at current levels.
Is MU a Good Stock to Buy Now?
Analysts remain bullish about MU stock, with a Strong Buy consensus rating based on 25 Buys and one Hold and Sell each. Year-to-date, MU has soared by more than 40%, and the average MU price target of $126.96 implies an upside potential of 2.8% at current levels.
