Investment bank Baird has named Micron Technology as one of its "Best Stock Ideas" ahead of the memory-chip maker's fiscal fourth-quarter earnings report.
Analyst Tristan Gerra rates Micron stock as outperform with a price target of 200. On the stock market today, Micron stock rose more than 1% to close at 117.75.
IBD MarketSurge charts show Micron stock in a cup-with-handle base at a buy point of 128.60.
"Micron is a business transformation story," Gerra said in a client note Wednesday. The company "is now well ahead of Samsung in critical segments" of the memory-chip market.
Those segments include LPDDR5, or fifth-generation low-power, double data rate memory, and SOCAMM, or system-on-chip advanced memory module. Its memory products in those areas are being used with Nvidia's GB200 artificial intelligence processor.
Plus, Micron's high-bandwidth memory (HBM) has been qualified for use with Nvidia systems, Gerra said.
"Micron is reaching a targeted low 20s percentage market share for HBM in the current quarter, ahead of its prior expectation due to strong execution and yield ramp," Gerra said. "Micron is the number-two supplier of HBM memory currently."
AI has created new business opportunities for Micron to provide advanced memory systems for data centers, Gerra said.
Micron Stock On Wedbush AI 30 List
Wedbush Securities analyst Dan Ives has named Micron to his Ives AI 30 list. That list includes the 30 tech companies that he believes will define the future of the AI revolution over the coming years.
Meanwhile, Micron stock is on two IBD lists: Leaderboard and Tech Leaders.
On Aug. 11, Micron raised its guidance for its fiscal fourth quarter ending Aug. 28. The Boise, Idaho-based company will report its fiscal Q4 results in late September.
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