• Wed. May 29th, 2024

Micron Technology: HBM Market Grows at a Compound Annual Growth Rate of Approximately 65% in the Next Three Years

BySamantha Nguyen

Mar 25, 2024
Investing.com raises Micron Technology stock price target to $130 on the back of AI and HBM growth

Mizuho has expressed confidence in Micron Technology by raising its stock price target to $130, up from $124, while maintaining its Buy rating on the stock. The firm’s updated forecast for fiscal year 2024 considers new tax assumptions that align with Micron’s guidance and the anticipated growth in the AI and High Bandwidth Memory (HBM) sectors.

Micron’s competitive advantage in the HBM market is highlighted due to its HBM3E offering delivering comparable performance to competitors but with lower power consumption (around 30% less) and no extreme ultraviolet (EUV) lithography, resulting in reduced costs. This gives Micron an edge over other players in this space.

The analyst pointed out several key factors influencing the revised target. They expect HBM pricing to be established for 2024 but may see an upside toward the end of the year and early 2025. Additionally, the introduction of a 12-Layer 36Gb HBM for a 288GB stack in the first half of 2025 is seen as a significant catalyst. These factors are expected to drive growth in this sector.

Mizuho estimates the HBM market to be worth around $9 billion in 2024 and $13 billion in 2025, potentially increasing to $10-11 billion and $14-15 billion, respectively. The market is projected to grow at a compound annual growth rate of approximately 65% over three years, reaching $17.5 billion by 2026.

In conclusion, Mizuho reaffirms its Buy rating and increases the stock price target to $130, with adjustments made to the estimates to reflect these insights. This information was generated with AI support and reviewed by an editor.

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

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