Shares of Micron Technology (NASDAQ: MU) have shot up to 20-year highs this fall thanks to a couple of price target upgrades by Wall Street analysts, who predict that the memory specialist has more upside to offer on the back of higher demand from data centers and 5G smartphones.
Deutsche Bank and Mizuho Securities have raised their per-share price targets to $70, indicating an upside of around 10% from Micron’s current stock price. But it wouldn’t be surprising to see the memory specialist break higher and surpass Wall Street’s expectations. Let’s see why.
MU data by YCharts
A favorable DRAM environment will be a tailwind for Micron
Micron Technology gets most of its revenue from the compute and networking business unit (CNBU). This segment supplied nearly 43% of Micron’s total revenue in the previous fiscal year, but its performance wasn’t good enough, as revenue fell nearly 8% over the