Memory and storage solutions provider Micron Technology, Inc. (MU) revealed that its low-power double data rate 5X (LPDDR5X) DRAM for MediaTek Inc.’s new Dimensity 9000 5G flagship chipset for smartphones has been validated.
Built on its 1α (1-alpha) node, the new chipset will help smartphones unlock applications powered by artificial intelligence and 5G innovation. Micron claims LPDDR5X to be the fastest and most advanced mobile memory available. It says that it has shipped the first batch of samples.
The boosted memory performance is critical for feeding massive amounts of data to the multiple heterogeneous processing engines. (See Micron stock chart on TipRanks)
Meanwhile, Micron disclosed that it was joining hands with leading smartphone manufacturers and chipset vendors to enable ecosystem innovation with LPDDR5X.
The Senior Vice-President and General Manager of Micron’s Mobile Business Unit, Raj Talluri, said, “Our collaboration with MediaTek to validate the world’s most advanced mobile memory empowers the ecosystem to deliver the next wave of rich mobile features enhanced by 5G and AI.”
Following the news, Citigroup analyst Christopher Danely maintained a Buy rating on Micron with a price target of $120. The price target implies upside potential of 44.5% from current level.
Danely is of the opinion that the firm’s DRAM analyst Peter Lee raised his DRAM pricing expectations for Q4 of 2021 and Q1 of 2022 on the back of upside from the PC end market. The analyst expects more positive catalysts for DRAM in the near term.
Based on 15 Buys, 6 Holds and 1 Sell, the stock has a Moderate Buy consensus rating. The average Micron price target of $96.09 implies 15.7% upside potential from current levels.
TipRanks data shows that financial blogger opinions are 100% Bullish on Micron, compared to the sector average of 69%.