Breaking down Micron’s giant rally. Why JPMorgan thinks shares can jump nearly 90%

The good times should continue to roll for shares of Micron Technology , according to Wall Street analysts. Shares of the memory chipmaker surged 17% on the back of a strong quarter and forecast driven by ballooning artificial intelligence demand, and many Wall Street firms see more upside ahead. The move put the company on pace for its best day since 2011 and put shares up more than 31% year to date. “We believe the stock should continue to outperform through 2024 and into 2025 as the market continues to discount improving revenue/margin/ earnings power on top of strong positive EPS revisions,” wrote JPMorgan’s Harlan Sur. MU YTD mountain Shares performance this year The analyst reiterated his overweight rating and $180 price target, reflecting 88% upside from Wednesday’s close. Underpinning the bullish stance is a bet on the company’s significant high-bandwidth memory (HBM) market share and the belief that the sector is in the early stages of a multi-quarter upcycle. Many analyst view the chip company’s HBM leadership as key to its ongoing success. Goldman Sachs’ Toshiya Hari reiterated his buy rating and adjusted his price target to $145 from $158, still pointing to a 51% gain. The analyst expects upward revision to Street estimates, noting that share gains across “multiple high-value segments” such as high-bandwidth memory should help it battle headwinds facing the smartphone and PC markets. Bernstein’s Mark Li expects ongoing demand to improve pricing and lead Micron to a record year in 2025. The analyst has a price target of $146 on Micron, signaling a 46% increase. He also has an outperform rating on shares. Meanwhile Barclays analyst Tim O’Malley referred to the results as “surprisingly strong amidst a sea of worry.” “We think that the sustainability of [NAND memory] coupled with more positive HBM commentary should quell fears of a material fundamental slowdown but do worry that we aren’t seeing the end market justification of the NAND pricing environment,” O’Malley said. O’Malley sees the stock soaring 51% over the next 12 months. He also has an overweight rating on the chipmaker.