00:00 Speaker A <\/p>\n
So here we have a pretty broad rally in chips, but one of these stands out, and that is Micron. Micron shares are up 14% today and that brings the total for the year to almost 200%. What is the catalyst for Micron in particular today? Well, they got a price target boost over at UBS here. You ready for this? <\/p>\n
00:20 Speaker A <\/p>\n
The price target had been $535 from Timothy Arcuri over there. Now it’s 1625, 1,625. You see the stock is trading around 855 today. So that leaves a lot of room for upside. <\/p>\n
00:40 Speaker A <\/p>\n
And basically, Arcuri is looking at the structural changes that we have seen in demand for DRAM, which is one of the types of memory and more specifically, of course, the high bandwidth memory that is key to the AI build out that has really lit a fire under this company’s earnings and under the stock. <\/p>\n
01:00 Speaker A <\/p>\n
And the structural change is that we have now gone to more long-term agreements for these types of chips. Long-term agreements is not something that was characteristic of the memory space in the past. It was more short-term. Now we’re talking about that there’s several years in terms of of some of these, um, these agreements. <\/p>\n
01:20 Speaker A <\/p>\n
And basically, the analyst says that up to 30% of volumes industrywide will be soon locked in at pricing that is just slightly below current levels, and these agreements will allow Micron to trade some near-term revenue for demand visibility and a smoother earnings profile. <\/p>\n
01:36 Speaker A <\/p>\n
What’s also also industry interesting when Arcuri sort of digs into that 1625 price target that he’s put on this here, he says this is based on a 15 times near-term P E multiple. He says, we see no reason why Micron should trade a whole lot differently than Nvidia in terms of PE. <\/p>\n
01:56 Speaker A <\/p>\n
So, thought that was an interesting statement as well. And again, these shares are up another 14% today, and we see lifts in other parts of the memory and storage complex today as a result. <\/p>\n","protected":false},"excerpt":{"rendered":"00:00 Speaker A So here we have a pretty broad rally in chips, but one of these stands…\n","protected":false},"author":2,"featured_media":72646,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[129],"tags":[2328,223],"class_list":["post-72645","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ubs","tag-micron-technology","tag-ubs"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116644872428325438","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/72645","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=72645"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/72645\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/72646"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=72645"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=72645"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=72645"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}