Bird raises MU price target to 1520 due to AI-driven demand and supply constraints supporting pricing/margins.

Micron. Raising the target price before the earnings announcement. Yes, listen, this stock has outperformed so far this year, and Bird expects it to continue to outperform. They have a very optimistic outlook on this stock.

They gave it an " overweight" rating (outperforming the market) for Micron.

They are raising their price target to 1520. That's up from 1280. What that means from Friday's closing levels is a rise of about 40% from there. Keep in mind that this stock has risen by about 279% since the beginning of the year, excluding today's movements. We are experiencing some weakness today.

But back to Micron, keep in mind that we have earnings results ahead of us today . Let's review why "Bird" sees more room for growth from here, and even better year-over-year performance.

They anticipate increased use of generative artificial intelligence, and expect that this will raise the demand for server CPUs and memory chips that operate alongside and within devices.

They also expect DRAM supply growth to slow in 2027. In other words, this will happen while shortages persist, and this is one of the things we have seen give pricing power within this industry.

Therefore, they believe this ongoing supply shortage may support Micron's pricing .

Byrd sees better profit margins next year for high-bandwidth memory, known as HBM, which is the fast memory used in artificial intelligence memory systems . Regarding profits, they say listen to updates on memory prices, margins, and the amount of supply Micron expects to provide in 2027.

They say: "The growing demand for generative artificial intelligence will propel Micron's stock to unprecedented heights ." Forecasts, we are looking at earnings per share of 31.50, Nicol.

We are looking at revenues exceeding 50.8 billion. Look, it helped push the Nasdaq index to new record highs.

In fact, I was talking to various analysts and brought up the idea that it might dethrone Nvidia and become the biggest driver of S &P 500 earnings growth based on what they heard from some analysts , such as what I just reported from "Bird".