At Extreme Investor Network, we are always looking for valuable investment opportunities for our readers. Today, we want to highlight Citigroup’s bullish stance on Micron Technology, despite the recent disruptions caused by the earthquake in Taiwan.
Micron, a leading memory chipmaker based in Boise, Idaho, reassured investors that all of its staff has been accounted for and is evaluating the impact of the earthquake on its operations and supply chain. Citigroup analyst Christopher Danely sees a potential silver lining in this situation. With approximately 60% of its Dynamic random access memory manufacturing in Taiwan, Micron could potentially see some scrappage of inventory, leading to favorable pricing. Danely reiterated Micron as a top pick with a $150 price target.
The semiconductor industry as a whole is assessing the aftermath of the 7.4 magnitude earthquake in Taiwan, a hub for chip manufacturing. Companies like Taiwan Semiconductor Manufacturing play a crucial role in the global chip supply chain, affecting U.S. companies like Micron.
Looking ahead, Danely expects Micron’s sales and earnings estimates to benefit from the growing demand for DRAM and high-bandwidth memory, driven by companies such as Nvidia. He estimates that this trend could generate $3 billion in revenue by 2025. Despite concerns about overcapacity in the DRAM market, Danely believes that higher capex spending in the coming years will be offset by increased demand and capacity loss due to high-bandwidth memory technology.
Danely’s price target for Micron implies a 21% upside from the current stock price, which has already rallied more than 45% since the beginning of the year. With these potential growth opportunities in mind, investors can consider Micron as a promising investment option in the semiconductor industry.
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