Micron Technology’s HBM market potential has been assessed by Mizuho, which has raised its stock price target to $130 from $124. The firm has maintained its Buy rating on the stock, and its updated forecast for fiscal year 2024 considers new tax assumptions that align with Micron’s guidance and anticipated growth in AI and HBM sectors.
The analyst at Mizuho identified several key factors that influenced the revised target. They expect HBM pricing to be established for 2024 but may see an upside toward the end of the year and early 2025. Additionally, the introduction of a 12-Layer 36Gb HBM for a 288GB stack in the first half of 2025 is seen as a significant catalyst.
Mizuho estimates that the HBM market will be worth around $9 billion in 2024 and $13 billion in 2025, potentially reaching $10-11 billion and $14-15 billion, respectively. The market is projected to grow at a compound annual growth rate of approximately 65% over three years, reaching $17.5 billion by 2026.
Micron’s competitive advantage in the HBM market is highlighted due to its HBM3E offering delivering comparable performance to competitors but with lower power consumption (around 30% less) and no extreme ultraviolet (EUV) lithography, resulting in reduced costs. This information was generated with AI support and reviewed by an editor.
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