Citigroup is maintaining its bullish stance on Micron Know-how even because the reminiscence chipmaker faces disruptions attributable to this week’s earthquake in Taiwan. Boise, Idaho-based Micron stated in an replace that each one of its workers have been accounted for and that it could be “evaluating [the earthquake’s] impact to our operations and supply chain.” Citi analyst Christopher Danely sees a possible silver lining. “Micron has roughly 60% of its [Dynamic random access memory] manufacturing in Taiwan and we believe the earthquake could result in some scrappage of inventory, which could help pricing,” he wrote, reiterating the inventory as a prime choose, with a $150 value goal. Semiconductor makers throughout the trade have been assessing the fallout from the 7.4 magnitude earthquake that rattled Taiwan, the strongest in 1 / 4 of a century. The island is house to a flourishing chip market — together with world chip provider Taiwan Semiconductor Manufacturing — that many U.S. firms depend on. Trying forward, Danely expects gross sales and earnings estimates to profit from the expansion of DRAM and high-bandwidth reminiscence pushed by firms reminiscent of Nvidia . This might yield $3 billion in income by 2025, he estimates. MU YTD mountain Shares this 12 months “Investors remain concerned about the DRAM upturn due to overcapacity in 2025,” he wrote. “While we expect DRAM capex to surprise to the upside in C24 and increase 36% in C25, we believe higher spending will be offset by capacity loss due to HBM and increased demand,” Danely wrote, referring to high-bandwidth reminiscence. Danely’s value goal on Micron implies 21% upside from Thursday’s shut. Shares have already rallied greater than 45% because the begin of the 12 months.
