Chip stock Micron Technology (NASDAQ:MU) gained in trading after Stifel analyst Brian Chin upgraded the stock to a Hold from a Buy and raised the price target to $120 from $80. The analyst’s Street high price target implies an upside potential of 21.2% at current levels.
Chin believes that Wall Street has underestimated FY25 earnings. He added that the tightening in Dynamic Random Access Memory (DRAM) supply will allow Micron to “better optimize” its product mix and could improve its gross margins.
In addition, Micron’s focus on ramping up the production of high-bandwidth memory semiconductors for use in AI is further expected to contribute to its growth.
Is MU a Good Stock to Buy Now?
Analysts remain bullish about MU stock with a Strong Buy consensus rating based on 25 Buys, one Hold, and one Sell. MU stock has surged by more than 75% over the past year, and the average MU price target of $98.35 implies a downside potential of 0.6% at current levels.
