DA Davidson Raises Micron Price Target to $1,500
DA Davidson analyst Gil Luria raised the price target on Micron Technology (NASDAQ: MU) to $1,500.00 (from $1,000.00) while maintaining a Buy rating.
“We compare the nature of the CPU and memory markets to try to answer the question of the day – why do AMD and INTC trade at over 40x while MU is trading at 9x even after a big run.
We are only raising our price target to $1,500 from $1,000 for now so someone can tell us what we are missing…Conventional wisdom here is that CPUs are not commodities and memory still is.
That would mean that memory is bought in the spot market and is entirely fungible.
While we understand that may have been the case in the past, the codesign of HBM into data center architecture appears to be changing that, as are longer-term deals.
CPUs do not seem any different at this point.
They also have a consumer market in which they appear as fungible as memory, and the changes in share at hyperscalers seem to be driven by price at least as much as functionality.”
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