Cantor Fitzgerald analysts reaffirmed their Overweight rating on Micron Technology (NASDAQ:MU), with a price target of $150, following an investor call focused on the health of the DRAM and HBM markets and Micron’s expanding product portfolio.
During the call, Micron highlighted its strong performance in the data center sector, driven by both AI and traditional servers, which is expected to fuel upside for the company’s November quarter guidance. The company remains optimistic about mid-single-digit growth in server demand, particularly from AI, while assumptions for PCs and smartphones appear conservative, with recovery expected by mid-2024.
The analysts emphasized that Micron’s shift toward high-value, higher-margin solutions is an underappreciated aspect of its growth story. Beyond its HBM products, Micron’s portfolio includes high-capacity server DRAM, LPDDR5, and eSSD, which are expected to generate multi-billion-dollar revenues in fiscal 2025. These offerings are poised to boost profitability due to their structurally higher gross margins, underscoring Micron’s long-term potential.