Deutsche Bank Ignites Micron Rally with Bold New Price Target Ahead of Crucial Earnings

Deutsche Bank has delivered a significant boost to Micron Technology investors, raising its price target for the memory chip giant to an impressive $170 from its previous $120. This substantial upgrade comes just ahead of Micron’s highly anticipated fiscal fourth-quarter 2024 earnings report, scheduled for September 25th after the market close.

Analyst Sidney Ho reiterated a "Buy" rating on Micron shares, underscoring the bank's strong conviction in the company's future prospects.

The core of this bullish outlook is Micron's pivotal position in the rapidly expanding artificial intelligence (AI) sector, particularly its leadership in high-bandwidth memory (HBM).

Ho’s research highlights the surging demand for HBM, which is critical for powering advanced AI applications and data centers.

This demand, coupled with increasingly tight supply across the memory market, is creating a favorable environment for Micron. The analyst noted, "We continue to believe that strong HBM demand will lead to tight supply and will continue to drive pricing higher, which should also pull DRAM and NAND prices higher." This suggests a broader uplift across Micron's product portfolio, not just HBM.

The report also anticipates robust guidance from Micron for the upcoming fiscal first quarter of 2025.

This expectation is rooted in improving fundamentals for both DRAM (Dynamic Random-Access Memory) and NAND (Non-Volatile Flash Memory) markets, which are showing signs of a strong recovery after a period of oversupply.

Micron Technology has already seen remarkable performance year-to-date, with its stock climbing significantly and recently hitting fresh all-time highs.

This momentum reflects growing investor confidence in the company's ability to capitalize on the AI boom and navigate the cyclical nature of the memory market effectively.

As investors eagerly await next week's earnings call, Deutsche Bank's upgraded price target serves as a powerful testament to Micron's strategic importance in the global technology landscape and its potential for continued growth fueled by the insatiable appetite for AI-driven memory solutions.