What is Micron Technology's outlook for the AI industry?

Micron Technology's outlook for the AI industry is positive, as the rising demand from the AI sector is expected to drive increased DRAM pricing and boost the company's profit margins.

How will Micron Technology's high-bandwidth memory (HBM) sales impact its financial performance?

Micron's sustained quarter-over-quarter growth in HBM sales is expected to be a key driver in helping the company achieve a 50% gross margin, which would exceed the prior cycle peak of 47.4% in 2021.

What is Citi's recommendation on Micron Technology's stock?

Citi has reiterated a "Buy" rating on Micron Technology's stock, with a $150 price target, expressing confidence in the company's growth prospects.

Home / Business and Economy / Micron Surges on AI-Driven DRAM Boom and 50% Gross Margin Forecast

Micron Surges on AI-Driven DRAM Boom and 50% Gross Margin Forecast

23 Aug

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Summary

Citi reiterates "Buy" rating on Micron with $150 price target
Micron's gross margins expected to exceed prior cycle peak of 47.4% in 2021
Sustained growth in HBM sales and rising AI demand driving DRAM pricing

Micron Surges on AI-Driven DRAM Boom and 50% Gross Margin Forecast

According to the latest analysis, Micron Technology, Inc. (NASDAQ:MU) is emerging as a must-watch stock for investors in the AI sector. In a major analyst call on August 20, 2025, Citi reiterated its "Buy" rating on Micron with a $150 price target, expressing confidence in the company's growth prospects.

The optimism surrounding Micron stems from the anticipated rise in profits and stronger margins, driven by favorable trends in the high-bandwidth memory (HBM) and DRAM markets. Citi's analysts believe that Micron's gross margins are poised to break through the 50% mark, easily surpassing the prior cycle peak of 47.4% recorded in 2021. This impressive margin expansion is expected to be fueled by the sustained quarter-over-quarter growth in HBM sales, as well as improved pricing in the DRAM sector, which is in turn backed by the increasing demand from the AI industry.

Furthermore, the analysts note that the demand for NAND flash memory is also anticipated to grow, particularly in the data center market, which will further boost Micron's revenue growth. The company's management has expressed confidence in its ability to capitalize on these favorable market dynamics and deliver strong financial performance in the coming quarters.

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