Micron Technology-Prediction: This Hot Artificial Intelligence (AI) Semiconductor Stock Will Skyrocket After June 25

Core Viewpoint - Micron Technology's stock has surged 37% recently, driven by a recovery in technology stocks and the anticipated positive impact of AI on its upcoming fiscal Q3 results [1][2] Group 1: Financial Performance and Guidance - Micron's fiscal Q3 guidance projects revenue of $8.8 billion, a significant increase from$ 6.8 billion in the same period last year [4] - Adjusted earnings are expected to rise by over 2.5 times year-over-year, with potential for exceeding guidance due to high demand for high-bandwidth memory (HBM) used in AI GPUs [4][9] Group 2: Demand for High-Bandwidth Memory - Micron's HBM is being utilized in Nvidia's latest GB200 and GB300 Blackwell systems, which have shown strong performance, with Nvidia's data center revenue increasing 73% year-over-year to $39 billion [5][6] - The transition to Blackwell GPUs, which feature larger HBM chips, is expected to drive further demand for Micron's products [6][7] Group 3: Pricing and Market Dynamics - Micron plans to increase HBM chip prices by 11% this year, reflecting strong demand and limited supply, with the company already sold out of its HBM capacity for 2025 [8] - The integration of HBM into more AI accelerators by other chipmakers like Broadcom and Marvell Technology is likely to expand Micron's market opportunities [9][10] Group 4: Investment Considerations - Despite the recent stock rally, Micron is trading at 23 times earnings, with a forward earnings multiple of 9, indicating strong growth potential [11] - Consensus estimates predict a 437% increase in earnings this year, followed by a 57% increase next fiscal year, with a median 12-month price target of$ 130 suggesting a 27% upside [12]