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Prediction: This Could Be the Biggest AI Stock You're Not Talking About
24/7 Wall St. • • business
Key Points:
- Micron Technology's stock fell sharply this week, down over 30%, but 24/7 Wall St. projects a 32.8% upside with a price target of $913.86 over the next 12 months, supported by strong fiscal results and buy signals with 90% confidence.
- Despite the recent sell-off, Micron reported record fiscal year revenue of $133.19 billion and non-GAAP EPS of $75.52, beating estimates for eight consecutive quarters and guiding higher for fiscal Q1.
- Micron holds 26 Strategic Customer Agreements through 2030, with over 75% of fiscal 2027 shipments already committed, and is collaborating with NVIDIA on advanced HBM4E memory, supporting bullish price targets as high as $1,342.
- Risks include the cyclical nature of the memory market, a recent Taiwan plant pause due to labor disputes, and market share concerns, which could impact execution and pricing.
- Compared to peers NVIDIA and SanDisk, Micron trades at a steep discount with a trailing P/E of 9x, making the current valuation attractive if the company continues to execute on its growth strategy and long-term agreements.
