Micron Technology, Inc. (NASDAQ:MU) is among the most promising AI stocks according to Wall Street analysts, playing a crucial role in enabling the broader AI industry with its products critical for powering AI technologies. Despite recent challenges due to weak demand for PCs and smartphones, the company’s role in memory development for AI and data center growth positions it for long-term revenue growth and margin expansion.
Citi analyst Christopher Danely reiterated a “Buy” rating on Micron’s shares, setting a price objective of $150.00. Danely remains optimistic about the data center segment’s performance, driven by increasing demand for AI applications. Additionally, the HBM segment is expected to contribute to overall margin growth with high gross margins.
Delaware Funds by Macquarie also sees solid fundamentals in Micron, expecting the company to benefit from the growth in AI demand as investment in new data centers intensifies the need for semiconductors.
Overall, MU ranks 6th on the list of most promising AI stocks according to Wall Street analysts. While Micron shows promise as an investment, there are potentially more deeply undervalued AI stocks that could offer higher returns in a shorter time frame. For investors interested in such options, it is recommended to explore the market further.
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