On Tuesday, Mizuho Securities adjusted its price target for Micron Technology (NASDAQ:MU), reducing it to $140 from $145, while retaining an Outperform rating on the stock. The firm's decision follows a recent meeting with Micron's management team.
In their evaluation, Mizuho highlighted a positive perspective on the DRAM and NAND markets looking towards 2025, noting the growth of High Bandwidth (NASDAQ:BAND) Memory (HBM) and an improving price environment for conventional DRAM. The firm expects HBM, particularly HBM3e, to experience accelerated growth driven by artificial intelligence (AI) applications, even as some major DRAM suppliers struggle with HBM3e qualifications.
Mizuho has moderated its November quarter expectations for Micron, aligning them with the company's guidance, which reflects a downturn in PC and handset demand that was anticipated. However, they foresee continued momentum for planar DRAM and HBM going into the February quarter.
The analysis also includes insights from Mizuho's Japan team, which suggests a potential shift in strategy by Samsung (KS:005930) from focusing on profitability to pursuing a larger market share. This change could potentially disrupt the DRAM market dynamics.
In summary, Mizuho maintains a positive outlook on Micron Technology, with the updated price target reflecting a slight adjustment in the face of current market conditions and competitive movements.
In other recent news, Micron Technology has been the center of several crucial developments. Susquehanna maintained a Positive rating on Micron shares but adjusted the price target to $175 from $185, following Micron's recent update on their November quarter DRAM and NAND bit shipments.
Wolfe Research also maintained an Outperform rating on Micron with a steadfast price target of $200.00, citing the potential influence of High Bandwidth Memory 3E (HBM3E) products on future growth.
Micron recently resumed its stock buyback program, signaling improved market conditions. The company also unveiled its PCIe Gen6 solid-state drive (SSD) technology and started shipping its ninth-generation (G9) triple-level cell (TLC) NAND solid-state drives (SSDs), marking an industry first with the highest transfer speed of 3.6 GB/s.
In collaboration with ASML (AS:ASML), Micron ordered the "High NA" tool, a development that promises advancements in computer chip manufacturing. However, the United States government is considering new restrictions that could limit China's ability to procure advanced artificial intelligence memory chips, potentially impacting Micron.
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