Micron Technology: Strong Buy Rating Backed by AI Demand and Strategic Growth Initiatives

DBS analyst Jim Hin Kwong Au has maintained their bullish stance on MU stock, giving a Buy rating on May 15.

Jim Hin Kwong Au has given his Buy rating due to a combination of factors that highlight Micron’s strong market position and growth potential. The company has outperformed expectations with an adjusted EPS of USD1.56, surpassing the consensus by approximately 10%, primarily driven by robust demand for AI memory and strategic cost reductions. The outlook for the third quarter of fiscal year 2025 suggests a significant revenue increase of around 30% and improved profitability, both exceeding market consensus and slightly above street estimates.
Micron’s leadership in advanced memory technology, including its cutting-edge DRAM and NAND products, positions it to capitalize on the growing demand for AI applications. The company is strategically poised to benefit from the rising adoption of generative AI, AI-driven data centers, and GPU-centric compute architectures. Furthermore, favorable supply-demand dynamics are expected to support strong revenue and profitability projections, with disciplined capacity expansion and sustained pricing strength. These factors, combined with a favorable market environment, make Micron a compelling long-term investment, justifying the Buy rating and a higher target price of USD149.00 per share.

In another report released on May 15, Citi also maintained a Buy rating on the stock with a $110.00 price target.