Micron Technology, a major memory manufacturer, has performed strongly this year and its stock price continues to rise. Foreign investors expect that there is still room for growth driven by artificial intelligence (AI) orders. Micron Technology has been one of the best-performing stocks in the S&P 500 Index (S&P 500) this year.
Micron shares have recently risen about 3% to about $193, preparing to exceed last week's closing record. Since the beginning of the year, Micron's stock price has increased by more than half. This situation is due to the market's high confidence in the demand for High-Bandwidth Memory (HBM) brought about by the AI boom. In the latest report, analysts at Morgan Stanley upgraded Micron's investment rating from "neutral" to "overweight."
In addition, Morgan Stanley analysts also significantly raised Micron’s target price from $160 to $220. This new price target is slightly higher than the consensus average price target of $196. Analysts noted that confidence from the market is very high and said the stock has more upside.
Micron Technology is one of several top-performing companies in the S&&P 500. Because it manufactures memory products that support the data storage required by AI data centers, it has benefited from the same market tailwinds as the AI trend. Micron Technology's partners include advanced AI chip manufacturers NVIDIA (Nvidia) and AMD. Due to the growth of the data center business, Micron's performance has benefited, and it announced a record single-quarter revenue last month.
In addition, AMD recently announced that it has reached a large-scale deal with OpenAI, causing AMD's stock price to surge by nearly 30%. The news also helped push up the share prices of partners such as Micron. Analysts said that while investment in AI infrastructure continues to be unsustainable and has not slowed down for the time being, the stock price of Micron Technology, which is expected to benefit, still only has room for continued growth.