Boise, Idaho-based Micron Technology, Inc. (MU) designs, develops, manufactures, and sells memory and storage products in the United States and internationally. The company has a market capitalization of over $482.8 billion and operates through the Cloud Memory Business Unit, Core Data Center Business Unit, Mobile and Client Business Unit, and Automotive and Embedded Business Unit segments.
Companies with a market cap of $200 billion or more are typically referred to as "mega-cap stocks." MU firmly belongs in that category. With a market cap comfortably above this mark, MU stands as a powerhouse in the semiconductor industry, ranking among the top companies supplying products used in leading-edge computing, consumer, networking and mobile products.
However, the chip stock currently trades 5.8% below its 52-week high of $455.50 recorded on Jan. 30. MU has gained 91.1% over the past three months, notably outperforming the State Street SPDR S&P Semiconductor ETF’s (XSD) 17% rise during the same time frame.
In the longer term, MU has delivered a standout performance. The stock rallied 360.2% over the past 52 weeks, comfortably outpacing the 55.7% return of XSD over the same period.
MU has also shown steady bullish movement. The stock has traded above its 200-day and 50-day moving averages since last year, with a few fluctuations. This impressive momentum is a testament to the stock’s resilience and technical strength.
On Feb. 2, Micron's shares grew 5.7% following an industry-wide memory supply shortage and soaring demand for its chips. Owing to the rising needs of data center operators expanding their AI capabilities, the market has experienced a shortage of memory chips, pushing the price of dynamic random-access memory (DRAM) to its highest levels since 2019. Investor optimism in the stock grew as Micron is one of the top suppliers of high-bandwidth memory (HBM) products to AI companies, and rising demand for its products suggests strong market conditions.
When stacked against its rival, Advanced Micro Devices, Inc. (AMD) has climbed 102.8% over the past year, lagging behind MU’s strong rally.
Wall Street continues to favor the stock highly. Among the 42 analysts tracking MU, the overall consensus stands at a “Strong Buy.” While the chip stock currently trades above its mean price target of $350.45, the Street-high target of $500 suggest it could rally as much as 16.6%.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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