Micron Has Tailwinds in Certain Memory Products, Rise of AI Devices

Micron Technology has some tailwinds in products including high bandwidth memory and expanding memory content from the rise of AI-powered devices but risks abound, analysts at BofA Securities say in a research note. Contributions from a HBM product in FY24 that are expected to increase in FY25, a return to normal cost down cadence helping gross margins expand and strong growth in AI servers and the rise of AI PCs/smartphones helping expand memory content are things they like for Micron. They see risks in Micron’s high sensitivity to the AI theme, which is subject to high expectations and volatility. Shares fall 6.1%, as 4Q guidance didn’t blow Wall Street away.

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