Micron Technology Stock News

Generative AI has given this once-overlooked chip giant a new lease on life. Micron stock has seen an explosive rally, but how much longer can it last?

Meta, Nvidia and Microsoft shares trade at discounts to their historical valuations, along with other plays in the chip and software sectors.

Micron Technology stands at a pivotal point near $250, with strong AI-driven growth and a geopolitical moat supporting a bullish outlook. MU's recent revenue and margin outperformance, combined with robust AI demand, suggests higher highs and structurally improved cycles compared to pre-AI eras. A DCF analysis points to a fair value of ~$375, implying 50% upside, though risks from cyclicality, ...

While concerns that the AI demand outlook is overblown and players like OpenAI will struggle to meet their commitments regarding GPUs are valid, these are bricks in a Wall of Worry built on a robust demand spike and the foundations of a multi-year memory chip supercycle.

Micron Technology (MU) shares took off Friday following bullish comments from Morgan Stanley, which called the memory chip maker a "top pick."

Micron Technology Inc (NASDAQ: MU) pushed meaningfully higher on Nov. 14th after Morgan Stanley's senior analyst, Joseph Moore, dubbed it a top pick heading into the new year. Moore raised his price objective on the memory chips manufacturer as well to $325 this morning, indicating potential upside of another 30% from current levels.

As history has shown us, during the Gold Rush, it was the sellers of picks and shovels who profited most, not the gold miners themselves. Micron Technology, Inc. reminds me of a picks and shovels seller because it provides the essential memory chips that power today's AI gold rush. Meanwhile, MU stock is significantly undervalued compared to peers like Nvidia, AMD, and Broadcom.

Memory chip stocks are deep in the red today, after Japanese peer Kioxia's earnings and revenue were dismally short of estimates.