Exane BNP Paribas analyst Karl Ackerman issues a rare double downgrade for $MU, lowering rating to Underperform.
👉 Key Highlights:
📍 Ackerman slashes Micron stock price target by $73, bringing it to $67 per share.
📍 Ackerman forecasts Micron will underperform AI peers through 2025 due to an oversupply of high-bandwidth memory.
📍 Raymond James analyst Srini Pajjuri reduces Micron price target from $160 to $125, maintaining an Outperform rating.
📍 Micron's capital expenditure forecasted to increase by 70% in fiscal 2025 to support production ramp-up.
📍 Current fiscal year's capex expected to hit $8 billion, with 2025 estimates translating to approximately $13.5 billion.
📍 Micron's HBM3E chips now integrated into Nvidia's H200 processors and Blackwell systems.
📍 The company anticipates generating "multiple billions of dollars in revenue from HBM in fiscal 2025."
📍 Micron shares fell by 40% since June due to concerns about high valuations and large capital spending requirements.
📍 Chief Executive Sanjay Mehrotra predicts significant growth in DRAM and NAND demand, driven by AI and AGI developments.
👉 Expert Statement:
🗨️ "While some investors are aware of the downside risk to near-term results, we believe Micron will underperform its artificial intelligence peers through 2025 due to an oversupply of high-bandwidth memory, leading to a faster-than-expected correction in conventional DRAM selling prices." - Karl Ackerman, Exane BNP Paribas analyst
🗨️ "We are in the early innings of a multi-year race to enable artificial general intelligence, or AGI, which will revolutionize all aspects of life." - Sanjay Mehrotra, Chief Executive, Micron Technology
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Detached House : This guy clearly has an agenda behind.
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