Why Wall Street is Rushing to Raise Price Targets? Eyes on Micron Ahead of Earnings

▲ 마이크론 테크놀로지(MU)/출처: X ©

Ahead of the earnings announcement for Micron, considered an artificial intelligence (AI) beneficiary stock, Wall Street has successively raised its price targets, increasing investor expectations. Some analysts presented the possibility of an additional rise of up to 46.8% compared to the current stock price, revealing strong optimism about the memory semiconductor industry.

According to cryptocurrency media outlet Finbold on June 22 (local time), Micron received successive price target upgrades from major Wall Street securities firms ahead of its earnings announcement on June 24. Three new reports released on this day suggested upside potential ranging from 9.05% to a maximum of 46.8% based on the current stock price.

The most conservative outlook came from Bernstein analyst Mark Lee. He significantly raised his previous price target from $510 to $1,300, maintaining a 'Buy' rating. Needham analyst Quinn Bolton also raised the price target from the previous $500 to $1,550, along with a Buy rating. This represents an upside potential of approximately 30.03% compared to the stock price of $1,192.06 as of June 22. The most optimistic forecast was $1,750, presented by Susquehanna analyst Mehdi Hosseini.

Behind Wall Street's optimism is the increasing demand for memory due to the growth of the AI industry. Experts assessed that the memory semiconductor supply shortage is likely to continue until 2027, projecting that Micron will be able to maintain favorable pricing power. The market expects this supply-demand imbalance to support improved performance and expanded profitability.

The actual stock price movement also reflects this. Micron started trading at $315.42 at the beginning of this year and then entered a full-fledged rally from late March. Subsequently, the stock surged by 277.93% to $1,192.06 as of June 22. Notably, it continued its bullish trend, rising by 15% even in June.

The media assessed that Micron maintained a relatively stable trend despite the market correction in early June triggered by renewed tensions in the Middle East and selling pressure that emerged during the fundraising process for SpaceX (NASDAQ: SPCX) initial public offering (IPO). Accordingly, the market is paying attention to whether this earnings announcement will serve as an opportunity to reconfirm expectations for expanding AI semiconductor demand.

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