Micron Technology, Inc. (NASDAQ:MU) is one of the AI Stocks Investors Are Watching Closely. On August 12, TD Cowen analyst Krish Sankar reiterated a Buy rating on the stock with a $150.00 price target. Sankar’s optimism for Micron stems from several factors.
The company’s recent preannouncement for the August quarter was a good starting point, driven by higher DRAM pricing, and reflecting strong revenue and earnings potential.
An overhead view of a large-scale data center with rows of servers and blinking lights.
Micron also highlighted the possibility of selling out its HBM3E 12H supply by CY26, which would further boost its revenue potential. Moreover, process node transitions by competitors may lead to a temporary supply tightness, which is good news for Micron.
There is also increased trade activity from Chinese customers and stable demand from hyperscalers, further boosting the optimism.
“Positively, we think shares will continue to do well as part of the AI trade with possible higher re-rating of the stock (MU trades at 9-10x C26 Street EPS today). We think this will happen once investors can better frame the HBM rev. opportunity in C26, an early 2026 catalyst, in our view. Our $150 PT values MU at 12x C26 EPS.”
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.
While we acknowledge the potential of MU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None.
