Micron Technology (MU) Receives Mixed Analyst Ratings Amid AI-Driven Growth Prospects - InvestingChannel

Micron Technology (MU) Receives Mixed Analyst Ratings Amid AI-Driven Growth Prospects

We recently published a list of 12 AI News and Ratings Investors Are Watching Right Now. In this article, we are going to take a look at where Micron Technology, Inc. (NASDAQ:MU) stands against other AI news and ratings investors are watching right now.

Redefining Innovation with Next-Generation AI

At CNBC’s ‘Money Movers’, Jack Hidary, CEO of Sandbox AQ, emphasized the shift towards B2B-focused AI, positioning it as the next major evolution in artificial intelligence. While language models like those from OpenAI have excelled in consumer applications, Hidary highlighted the untapped potential of quantitative AI (QAI) in driving innovation across industries like pharmaceuticals, automotive, and energy. QAI uses fundamental equations to generate new data, which enables advancements in drug development, materials for energy storage, and aerospace.

Hidary pointed out that large quantitative models are set to transform product development by creating significant economic value, unlike large language models, which primarily reduce operational costs. He predicts that 2025 and beyond will see a growing focus on AI’s role in addressing critical challenges in B2B sectors, from building better batteries to accelerating medical breakthroughs. This evolution underscores a future where AI goes beyond text-based applications, becoming a cornerstone for innovation across various industries.

READ ALSO: 10 AI News Dominating Wall Street Today and 11 Important AI News and Ratings for Investors.

The Role of Generative AI in Transforming Sales Strategies

As per a Mckinsey report, An unconstrained future: How generative AI could reshape B2B sales, GenAI is transforming B2B sales by improving efficiency, fostering growth, and reshaping sales operations. While the core role of sellers including building trust, creating value, and minimizing friction remains unchanged, generative AI enables productivity gains through automation, personalized insights, and strategic guidance.

Companies adopting these tools report improved customer experiences, faster sales processes, and new growth opportunities. Looking ahead, AI integration is expected to redefine sales models, emphasizing customer outcomes, long-term success, and collaboration between human and AI-driven agents. To adapt, businesses must embrace agile strategies, invest in AI-driven capabilities, and align their sales approaches with evolving customer expectations.

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Micron Technology, Inc. (MU) Receives Mixed Analyst Ratings Amid AI-Driven Growth Prospects A close-up view of a computer motherboard with integrated semiconductor chips.

Micron Technology, Inc. (NASDAQ:MU)

Number of Hedge Fund Holders: 107

Micron Technology, Inc. (NASDAQ:MU) specializes in memory and storage solutions, serving markets such as data centers, automotive, and mobile devices. The company focuses on developing high-speed, low-latency memory and storage technologies, catering to industries including AI and other advanced computing applications.

On December 20, DBS analyst Jim Hin Kwong Au maintained a Buy rating on Micron with a price target of $149, citing the company’s strong position to benefit from the growing demand for AI-driven memory and storage solutions, as per TipRanks. Micron’s advancements in NAND and DRAM technology, along with its focus on next-gen nodes, give it a competitive edge. The digital transformation in data centers is also expected to drive growth, despite a slight earnings miss.

Earlier, Morgan Stanley analyst Joseph Moore Moore lowered Micron’s price target to $98 from $114, maintaining an Equal Weight rating. This adjustment follows the company’s Q2 revenue guidance falling short of expectations, driven by a decline in NAND revenue, with AI growth expected to be impacted by commodity weakness. More details in our report: 10 AI News Investors Shouldn’t Miss.

Overall, MU ranks 6th on our list of AI news and ratings investors are watching right now. While we acknowledge the potential of MU as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.

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