🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Micron Technology 'in position to get more money from CHIPS Act' - Citi

Published 06/05/2023, 09:01 AM
© Reuters Micron Technology (MU) 'in position to get more money from CHIPS Act' - Citi
MU
-

Citi analysts assigned Micron Technology (NASDAQ:MU) as a new top pick, maintaining a Buy rating and $75 price target on the stock in a note to clients on Monday.

The analysts said they believe the China ban on Micron should put the company "in position to get more money from the CHIPS Act, given that most companies appear to be opting for the minimum $150.0 million given costly contingencies."

"We are changing our relative ratings and moving Micron to our top pick, with ON second, and dropping ADI to third given continued concerns in the automotive and analog space," they wrote.

In the memo on US semiconductors, the analysts said they spent the week meeting companies in Taiwan and noted that while companies directly connected with generative AI continue to shine, "the rest of the semiconductor market remains tepid with sluggish demand and high inventory."

As a result, Citi reiterated its cautious stance on the group "given the melt-up driven by AI hype."

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.