CLSA Initiates Coverage on Micron Technology (MU) With an Outperform Rating

Micron Technology, Inc. (NASDAQ:MU) is one of the best affordable growth stocks to buy. In a new note released on August 27, CLSA analyst Sanjeev Rana initiated coverage on Micron Technology, Inc. (NASDAQ:MU) with an Outperform rating and a price target of $155.

The analyst told investors that he sees Micron Technology, Inc. (NASDAQ:MU) as a primary beneficiary of the growing AI spending, citing steady pricing in DRAM, solid demand for high-bandwidth memory (HBM), and signs of recovery in NAND.

For NAND, the analyst sees signs of recovery with rising demand for enterprise SSDs and a supplier hold-back on aggressive spending.

Rana also stated that Micron Technology, Inc.’s (NASDAQ:MU) pivot towards more customized, AI-focused memory products warrants a higher multiple, setting the company’s price target at 2.4x FY26 book value, a premium to its historical average.

Micron Technology, Inc. (NASDAQ:MU) provides innovative memory and storage solutions. Its operations are divided into the following segments: Compute and Networking Business Unit (CNBU), Mobile Business Unit (MBU), Embedded Business Unit (EBU), and Storage Business Unit (SBU).

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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Disclosure: None. This article is originally published at Insider Monkey.