JP Morgan’s Harlan Sur has revised Micron’s (MU) stock price target to $1540. The increased price target has an upside of 64.35% from current price levels. JP Morgan is one of many to have a bullish outlook on Micron (MU). TD Cowen’s Krish Sankar raised his projection to $1600, an upside of 70.76% from current price levels. Let’s discuss why Wall Street is increasingly bullish on Micron (MU) and if the company can deliver.
Why Is Wall Street Raising Micron’s Stock Price Target?
Micron (MU) is undoubtedly one of the biggest beneficiaries of the ongoing AI boom. The company’s AI memory chips are a critical part of the AI industry. Additionally, Micron is the only US-based company among the big three in the AI memory chip sector, with SK Hynix and Samsung Electronic dominating the larger market. Given Micron’s unique position as the only US company, it is not surprising that Wall Street is increasingly bullish on Micron’s stock.
Micron (MU) reported massive gains in its recent earnings report. The company’s revenue more than quadrupled year-over-year to $41.46 billion. It also reported earnings per share (EPS) of $25.11 and a net income of $28.86 billion. The figures were significantly higher than what many anticipated. The growth may have further pushed Micron’s stock price target.
Micron (MU) also recently announced a $250 billion investment plan for the US. The company aims to ramp up domestic production amid an global memory chip shortage. Memory chip prices have skyrocketed due to low supply, and companies are rushing to increase production.
Also Read: Why Micron Stock Crashed 14% in a Month Despite Stellar Earnings (MU)
High earnings, a unique position in the global market, and an expansion plan are some of the reasons why Wall Street is so bullish on Micron (MU). Experts anticipate the AI boom to continue into the next few years. Micron (MU) stock may be gearing up for a major upswing, if we go by Wall Street estimates.