Aletheia Capital has raised its price target for Micron Technology to $1,600 per share, up from $1,400, citing robust demand for memory chips critical to artificial intelligence (AI) infrastructure. The US-listed semiconductor company has seen its stock rally sharply in 2024 as hyperscale cloud providers and AI start-ups race to secure high-bandwidth memory (HBM) components.
The upgrade comes amid a broader surge in semiconductor stocks, with the Philadelphia Semiconductor Index gaining nearly 30% this year. Aletheia analysts noted that Micron is well-positioned to benefit from the AI boom, particularly through its HBM3E products, which are used in Nvidia's latest graphics processing units. 'We see Micron as a key beneficiary of the structural shift towards AI computing,' the analysts said in a note.
For UK investors and pension holders with exposure to US tech stocks, the move highlights the growing influence of AI on global equity markets. Many UK pension funds hold shares in US technology companies through passive index trackers, meaning the rally in Micron and similar stocks could boost portfolio returns. However, analysts caution that the sector remains volatile and subject to regulatory scrutiny, particularly around export controls on advanced chips.
The semiconductor industry has faced headwinds from geopolitical tensions, including US restrictions on chip sales to China. Micron itself was barred from selling certain products in China last year, though it has since resumed some shipments. Aletheia's price target implies a potential upside of around 15% from current levels, though the stock's valuation remains elevated compared to historical averages.
Source: Aletheia Capital research note