Micron Technology, Inc (NASDAQ:MU) shares are seeing a surge after receiving higher price targets from analysts at Citigroup and TD Cowen.
Citigroup's analyst, Christopher Danely, reiterated a Buy rating on Micron Technology and raised the price target from $95 to $150.
He anticipates that Micron will exceed consensus estimates when it reports its second-quarter fiscal 2024 results on March 20.
Danely cited strong DRAM pricing and shipments of High Bandwidth Memory (HBM) used in Nvidia Corp (NASDAQ:NVDA) AI systems as key drivers for this optimism.
Danely also adjusted his fiscal 2025 EPS estimate for Micron from $6.38 to $6.65 and increased the price target based on a 15X multiple of his 2026 EPS estimate of $10.03.
This represents a 50% premium to Micron’s historical range.
He highlighted Micron's growing exposure to AI, comparing it favorably to other AI-exposed stocks like Broadcom Inc (NASDAQ:AVGO) and Advanced Micro Devices, Inc (NASDAQ:AMD), which have seen their multiples double.
TD Cowen's analyst, Krish Sankar, maintained an Outperform rating on Micron Technology and raised the price target from $100 to $120.
Investors interested in Micron can gain exposure through REX FANG & Innovation Equity Premium Income ETF (NASDAQ:FEPI) and Invesco Semiconductors ETF (NYSE:PSI).
Micron's stock was up 2.32% to $93.55 at the last check on Friday.