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On Monday, Mizuho expressed confidence in Micron Technology (NASDAQ:), raising its price target to $130 from $124 and reiterating its Buy rating on the stock. His latest forecast for the company's fiscal year 2024 takes into account new tax assumptions in line with Micron's guidance and expected growth in the AI and higher technology sectors. bandwidth (NASDAQ:) Memory (HBM) Sector.
Analysts highlighted several key factors influencing the revised targets. HBM's price is expected to be fixed in 2024, but could see an upward trend from the end of the year to early 2025. Furthermore, the introduction of 12-layer 36Gb HBM for 288GB stacks predicts a significant catalyst. In early 2025.
Mizuho estimates that the HBM market will be worth approximately $9 billion and $13 billion in 2024 and 2025, respectively, with the potential to further increase to approximately $10 billion to $11 billion and $14 billion to $15 billion. are doing. This market is expected to grow at a compound annual growth rate (CAGR) of approximately 65% over three years, reaching approximately $17.5 billion by calendar year 2026.
Micron's competitiveness in the HBM market has also been noted, with its HBM3E offering comparable performance to competitive products while consuming approximately 30% less power and eliminating the use of extreme ultraviolet (EUV) lithography, leading to cost savings.
The company's report concludes by adjusting its estimates to reflect these insights, reaffirming its Buy rating and raising its price target to $130.
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