Micron Technology stock was the top performer in the S&P 500 Monday after an analyst at BofA Securities said that shares have room to grow as demand for high-bandwidth memory increases.
Shares of Micron jumped 6.7% to $125.80 on Monday. If they closed at those levels, the shares would set a record high. The stock, which has gained 47% this year, was the best performer in the S&P 500 and Nasdaq 100 on Monday.
Vivek…
stock was the top performer in the
Monday after an analyst at BofA Securities said that shares have room to grow as demand for high-bandwidth memory increases.
Shares of Micron jumped 6.7% to $125.80 on Monday. If they closed at those levels, the shares would set a record high. The stock, which has gained 47% this year, was the best performer in the
and
on Monday.
Vivek Arya increased his price target on
to $144 from $120 on Monday, implying a 22% increase to the stock’s closing price on Thursday. The analyst also maintained his Buy rating on the shares.
High-bandwidth memory, or HBM, is a type of memory interface that can be used to help power artificial intelligence. Micron management noted on the company’s fiscal second-quarter earnings call on March 20 that demand for HBM was strong. Chief Executive Sanjay Mehrotra said on the call that the company was “on track to generate several hundred million dollars of revenue from HBM in fiscal 2024.”
Arya wrote in a research note Monday that he expects demand for HBM to continue to grow, which will push the company’s market share in the space even higher. It will help “drive record overall company sales in CY25/26E,” he said.
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Arya is far from the only Micron bull. Of the 38 analysts surveyed by FactSet, 32 rate the stock as a Buy, three have it as a Hold, and three recommend investors sell their shares.
Write to Angela Palumbo at angela.palumbo@dowjones.com
