Micron’s Strong Market Position and Growth Potential Driven by Data Center Demand and HBM Momentum

Analyst Aaron Rakers of Wells Fargo maintained a Buy rating on Micron (MU – Research Report), with a price target of $130.00.

Aaron Rakers has given his Buy rating due to a combination of factors that highlight Micron’s positive market position and growth potential. One of the key reasons is the strong demand in the Data Center segment, which aligns with Micron’s expectations and indicates a favorable supply-demand dynamic. The company’s comments on demand trends, particularly in the Data Center, suggest a positive outlook for the near future.
Additionally, Micron’s momentum in High Bandwidth Memory (HBM) is noteworthy, with revenue surpassing $1 billion in the second quarter of fiscal 2025, growing over 50% quarter-over-quarter. This growth is ahead of plans due to better yields, and Micron has raised its total addressable market outlook for HBM to approximately $35 billion. Furthermore, Micron’s advancements in DRAM and LPDDR5X solutions for the Data Center, coupled with its position as a primary supplier for NVIDIA, underscore its strong market presence and potential for continued revenue growth.

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

MU’s price has also changed slightly for the past six months – from $99.180 to $95.320, which is a -3.89% drop .