Micron (MU) Stock in Focus: AI Demand Fuels $150 Price Target

Micron Technology, Inc. (NASDAQ:MU) is one of the Must-Watch AI Stocks for Investors. One of the biggest analyst calls on Wednesday, August 20, was for Micron. Citi reiterated the stock as “Buy” with a $150 price target. The firm said that it’s standing by the semis company.

The optimism on Micron stems from anticipated rise in profits with stronger margins due to favorable high-bandwidth memory (HBM) and improved pricing in the DRAM sector, which is in turn backed by rising demand from the AI industry.

The demand for NAND is also anticipated to grow, particularly in the data center market, which will further boost revenue growth. The sustained quarter-over-quarter growth in HBM sales will also help achieve a 50% gross margin.

“We spent time in investor meetings with Micron management this week and dug into sources of upside and came away more confident that its gross margins can break through 50%, which would easily exceed the prior cycle peak of 47.4% in 2021 driven by increasing HBM [high bandwidth memory] mix and better pricing in DRAM due to increasing AI demand.”

Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.

While we acknowledge the potential of MU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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