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Micron Technology, Inc. (MU), based in Boise, Idaho, is a leading global manufacturer of memory and storage solutions. It is known for its innovative semiconductor products and significant market presence. With a market cap of $149.3 billion, MU's main rivals include Advanced Micro Devices, Inc. (AMD), which excels in high-performance computing and graphics.
Companies worth $10 billion or more are considered "large-cap" stocks and Micron Technology fits right into that category. Through substantial investments in research and development, Micron consistently drives innovation in memory and storage solutions. Strategic acquisitions and key partnerships have further enhanced its technological capabilities and global market reach.
Shares of MU climbed to a new high of $135.66 in the last trading session, with MU up 38.1% over the last three months. Over this same period, the Dow Jones Industrial Average Index ($DOWI) has gained marginally, so MU stands out as a serious outperformer.
Longer term, MU is up 58% on a YTD basis, and the shares are now holding onto a solid gain of 106.1% over the past 52 weeks. In comparison, the Dow is up 3.1% in 2024 and 14.7% over the past year.
To confirm the bullish price trend, MU has been trading above its 200-day moving average since early April 2023 and above its 50-day moving average since late February.
Micron Technology has outperformed broader indexes, driven by the AI boom and a rebound in the memory market. In the first quarter, Micron shares rose by 10.6% due to increased demand for memory chips in data centers and smartphones. The company is also set to receive $6.1 billion in CHIPS Act grants from the Commerce Department to build semiconductor factories in New York, aiming to establish multiple complex chip plants over the next 20 years, as Senate Majority Leader Chuck Schumer (D-NY) stated.
Highlighting the contrast in performance, MU's competitor, Advanced Micro Devices, has underperformed MU. AMD has experienced an 8.8% gain on a YTD basis.
Given its recent outperformance, analysts are optimistic about MU's prospects. The stock has a consensus rating of "Strong Buy" from 27 analysts in coverage. The mean price target of $136.48 reflects a 1.2% premium over current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
