11 Best Data Center Stocks To Buy According to Analysts

03. Micron Technology, Inc. (NASDAQ:MU)

Upside Potential: 67.00%

Latest Average Share Price Target: $152.31

Micron Technology, Inc. (NASDAQ:MU), a global leader in memory and storage solutions, has demonstrated robust performance that positions it as a standout pick in the data center sector. The company designs and manufactures a broad range of memory and storage products through its Compute and Networking, Mobile, Embedded, and Storage business units. Micron’s offerings include high-speed dynamic random-access memory (DRAM) and non-volatile storage devices, marketed under its Micron and Crucial brands, which cater to various markets, including cloud servers, enterprise, mobile devices, and automotive applications.

In its Q3 2024 earnings call, Micron Technology, Inc. (NASDAQ:MU) reported impressive financial results, surpassing earnings expectations with an EPS of $0.62, well above the anticipated $0.48. Revenue for the quarter hit $6.8 billion, reflecting a significant 17% sequential increase and an 82% year-over-year surge. This growth was driven by strong price increases and an improved product mix, particularly in the data center sector, where revenue rose by over 50% sequentially due to escalating demand for AI-related products.

Micron Technology, Inc. (NASDAQ:MU) data center segment, which has become a focal point of its growth strategy, saw substantial expansion. The company’s advanced memory technologies, including high-bandwidth memory (HBM) and high-capacity DIMMs, contributed to this growth. Micron’s HBM products, which offer lower power consumption compared to competitors, are projected to generate several hundred million dollars in revenue for fiscal 2024 and billions in fiscal 2025. The company’s NAND flash products also performed well, with revenue increasing by 32% sequentially. This is a testament to Micron’s strength in providing high-performance solutions essential for data center operations and AI infrastructure.

The company’s forward-looking statements reflect a positive outlook for continued growth in data center demand. Micron Technology, Inc. (NASDAQ:MU) investment in leading-edge technologies, including advanced DRAM and NAND nodes, is expected to drive future profitability. Despite recent operational disruptions due to a Taiwan earthquake, Micron has maintained its cost reduction targets and continues to benefit from favorable pricing trends and a tight supply environment. Overall, Micron Technology, Inc. (NASDAQ:MU) strong financial performance, coupled with its strategic focus on high-margin, next-generation memory products, makes it a compelling choice for investors looking to capitalize on the growing data center and AI-driven market.