Micron Technology may double as AI boom stokes demand for memory hardware, D.A. Davidson says

Micron Technology may see its shares nearly double as the artificial intelligence boom boosts demand for the company's memory scaling offerings, according to D.A. Davidson. The investment bank began research coverage of Boise, Idaho-based Micron with a buy rating, and a $1,000 12-month price target, suggesting 91% upside from Monday's close. "Artificial intelligence is creating a longer-than-usual memory cycle as compute deployment and demand generation exist in a positive feedback loop, creating a structurally higher ceiling for memory pricing and demand," Davidson analyst Gil Luria wrote Tuesday in a 27-page report. "Combined with Micron's node leadership and what we see as a long duration earnings power story, we see meaningful upside to shares." Micron is focused on developing memory scaling technologies, using four consecutive Dynamic Random Access Memory (DRAM) nodes and three NAND nodes, according to D.A. Davidson. Nodes are devices that manage data transmission in a network. They enable many electronics, including smartphones and computers, to operate quickly and efficiently, while also supporting data center operations. Micron's nodes are likely to become more popular as AI booms, lifting sales and the stock, Davidson said. "We see node leadership as a compounding advantage that improves Micron's cost position with each generation and positions Micron to gain share in higher-margin products across the data center," Luria wrote. …