KeyBanc upbeat on Micron shares, cites strong Q2 results, NAND and DRAM price hikes
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On Thursday, KeyBanc Capital Markets adjusted its outlook on Micron Technology (NASDAQ:MU), increasing the share price target to $135 from the previous $115 while retaining an Overweight rating. This change follows Micron’s announcement of fiscal second-quarter results and third-quarter guidance, which exceeded market expectations.
Significant price increases in both DRAM and NAND memory products bolstered Micron’s recent financial performance. The company experienced a high teens percentage rise in DRAM pricing, while NAND prices surged by more than 30%. A notable uptick in conventional server demand contributed to this growth, alongside continued strong performance in the AI server segment.
The semiconductor manufacturer also shared updates on its High Bandwidth (NASDAQ:BAND) Memory (HBM) business. Micron has initiated volume production shipments of its HBM3E product and reported that its capacity for calendar year 2024 is already sold out, with the majority of 2025 following suit. The company anticipates HBM-related revenues to amount to several hundred million dollars in fiscal year 2024. Additionally, Micron expects its HBM market share to align with its overall DRAM market share by calendar year 2025.
KeyBanc’s revised estimate and price target reflect a positive view of Micron’s performance and market position. The firm’s analysis underscores Micron’s positive results and promising outlook for its HBM technology, as the company cements its standing in the memory segment.
