Mizuho Sees Micron (MU) Benefiting From AI Storage Needs and Persistent HDD Shortages

Micron Technology Inc. (NASDAQ:MU) ranks among the best long-term stocks to buy according to D. E. Shaw. Following virtual investor meetings with company executives, including CFO Mark Murphy, Mizuho analyst Vijay Rakesh maintained an Outperform rating and a $265 price target for Micron Technology Inc. (NASDAQ:MU) shares on November 10. The analyst noted many significant trends from the conversations, including the fact that demand for high bandwidth memory (HBM) is expected to remain strong through 2026-2027.

According to the analyst, memory prices could be supported over the coming years by China’s restricted capacity. Chipmaking regulations are delaying between 30% and 35% of Samsung and Hynix’s memory production, which could keep supply tight and enable Micron Technology Inc. (NASDAQ:MU) to profit from higher prices into 2027 and 2028.

Additionally, he pointed out that Micron’s upcoming U.S. plants in Idaho and New York, which are expected to begin production between 2027 and 2029, may increase its U.S. DRAM share over the next ten years from mid-single digits to about 20%.

Rakesh noted that while AI server demand for QLC enterprise solid-state drives (eSSDs) is rising, capital investment in the NAND flash memory segment continues to be regulated, while hard disk drives (HDDs) remain in short supply.

Micron Technology Inc. (NASDAQ:MU) designs, develops, manufactures, and sells memory and storage products across the world.

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