It’s been a strange couple of years to be a chip stock like Micron Technology (NASDAQ:MU). From shortages to recoveries, to demand explosion and destruction, almost every possible market condition for chipmakers has been seen in the last three years or so. Now, Micron’s gained ground thanks to an upgrade from analysts at Deutsche Bank and the fundamentals that underlie that upgrade.
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The upgrade, from Deutsche Bank analyst Sidney Ho, noted that things are turning around once again for chipmakers. The growing number of use cases doesn’t hurt either, as artificial intelligence applications start pulling in their own chip demand. That’s not only putting up demand for memory with high bandwidth but also for DDR5 systems. Ho notes that the price increases seen so far are “sustainable” and are actually likely to pick up in the next two quarters.
And Micron, for its part, is working to make plenty of hay while this particular sun shines. It’s ramping up construction efforts in India, taking advantage of government incentives to build at least one new factory. Reports also note that Micron’s Indian efforts are also prompting other chipmakers to step up their own Indian operations. Further, Micron is stepping up its United States chip efforts as well, with a plant set to open in New York in just a few years and backed by some major technology. This includes wafer-printing systems known as EUVs, which are roughly the size of a semi-trailer each.
Is MU a Good Stock to Buy?
Meanwhile, analysts have taken notice across the board. Micron Technologies stock is considered a Moderate Buy, supported by 19 Buy ratings, six Holds, and one Sell. Further, with an average price target of $76.38, Micron Technologies stock offers investors an 8% upside potential as well.
