Micron Technology is projected to achieve record revenue next year, despite recent concerns causing a drop in its stock price. Some investors are worried about the weak demand in key markets for Micron’s memory and storage products, but Citigroup’s analyst remains optimistic about the company’s solid fundamentals. The analyst maintains a buy rating on Micron’s shares with a $150 price target, expecting a 37% increase from the current price.
One major growth catalyst for Micron is the increasing demand for AI servers, which require high memory bandwidth to process data. Despite soft demand trends in markets Micron relies on for revenue, the company reported strong growth in the last quarter and expects improving selling prices for memory and storage chips this year. Micron’s management anticipates achieving record revenue and profitability in fiscal 2025, driven by the ongoing investments in AI servers.
With the stock trading at a favorable forward P/E ratio and historical P/E averages suggesting potential upside, it is reasonable to consider investing in Micron. The company is well-positioned to benefit from the expanding market for AI servers and could reach the analyst’s price target within the next 12 to 18 months. As other markets, like smartphones, show signs of recovery, Micron’s stock could see further growth potential in the near future.