Micron's stock just notched its first close above $1,000 amid a wave of enthusiasm for the memory-chip maker's ability to capitalize on artificial-intelligence trends.
To start, the company could be a beneficiary of Nvidia's (NVDA) new foray into personal-computing chips via its RTX Spark product, Stifel analyst Brian Chin told MarketWatch on Monday.
That's because the chip can support higher memory capacity - with Micron memory chips being a likely beneficiary - and better efficiency than the average personal-computer processor. The Nvidia chip will be released in the fall, and will power desktops from companies including Dell, HP, Lenovo and Microsoft.
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Morningstar analyst William Kerwin told MarketWatch that Micron's $(MU)$ stock surge above the $1,000 threshold could be exciting investors. And analysts have been hiking their price targets on the stock, suggesting upside from Monday's close of $1,034.74.
Earlier in the day, Raymond James analyst Melissa Fairbanks raised her price target to $1,100 from $530, saying that she expects AI demand and the "constrained" supply of memory is likely to persist through 2027 and 2028, which should allow Micron to sustain high prices.
She wrote in a note that high-bandwidth memory chips become increasingly complex with each new generation of graphics processing units, which is reinforcing the company's position as one of the few HMB suppliers in the market.
Last week, D.A. Davidson analyst Gil Luria raised his price target to $1,500 from $1,000, saying that Micron, along with SK Hynix and Samsung, own "almost the entire" DRAM and high-bandwidth memory market.
He's "not aware of any competition coming," according to his note. That's because entering the market would require creating a new fabrication facility that could take two to three years to build, he said.