Micron (NASDAQ:) shares rose ahead of Monday’s market open after analysts at Baird and Citi raised their respective price targets for the artificial intelligence memory chip maker.
The moves come ahead of Micron’s release of fiscal 2024 fourth-quarter results on June 26.
Citi, which rates MU shares as a top pick, expects the company to report better-than-expected results and guidance “given DRAM growth and Micron’s growing influence in AI memory.”
“We raise estimates and price target from $150 to $175 and believe Micron should continue to trade at a premium to its historical range given the impact of AI,” the analysts added.
The Wall Street giant projects Micron’s high-speed artificial intelligence memory (HBM) revenues to be $700 million in calendar year 2024 and $3 billion in 2025.
At the same time, Baird analysts raised their price target on MU shares from $150 to $172, saying they “continue to see significant upside opportunities” as DRAM prices remain strong.
“HBM is reminiscent of the early days of NAND flash memory with a similar CAGR and even higher gross margin potential. Memory pricing trends remain strong in the short term, with further price increases expected throughout the year,” the investment firm wrote.