| | | Wells Fargo: 3 Chip Stocks to Buy as We Head Into 2021
Contributor
Michael Marcus TipRanks
Published
Dec 28, 2020 11:27AM EST
full article at nasdaq.com
excerpt on Miicron (AMD and WDC are also discussed):
Looking ahead, Micron has updated its F1Q21 guidance, predicting total revenue of $5.7 billion to $5.75 billion. This is a 10% increase from the previous guidance.
Wells Fargo's Aaron Rakers calls Micron his top semiconductorexcept idea for 2021. He points out “a deepening positive view on the memory, and in particular the DRAM industry. DRAM accounts for approximately two-thirds of Micron’s revenue and over 80% of the company’s bottom-line profits.”
In addition, Rakers notes “Micron’s technology execution – 1Znm DRAM leadership; recently outlined 1anm ramp into 2021, as well as Micron’s move to 176-Layer 2nd -gen Replacement Gate 3D NAND to drive improved cost curve. We would also highlight Micron’s execution on graphics memory (e.g., GDDR6X), Multi-Chip Packages (MCPs), and High-Bandwidth Memory (e.g., HBME2) as positives.”
In line with these comments, Rakers rates Micron shares a Buy, along with a $100 price target. This figure suggests room for 41% growth in 2021. (To watch Rakers’ track record, click here)
Micron has 24 recent reviews on record, breaking down to 19 Buys, 4 Holds, and 1 Sell, and giving the stock a Strong Buy from the analyst consensus. Shares are priced at $70.96, and recent appreciation has pushed them almost to the $74.30 average price target. But as Rakers’ outlook suggests, there may be more than just 4.5% upside available here. ( See MU stock analysis on TipRanks) |
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