Micron Technology Inc. appears to be turning the corner after the memory-chip maker called the bottom in a tough market just as artificial-intelligence tech caught fire this year, and investors will get soon get to see the impact.
Srivastava, who has an outperform rating and an $80 price target, said he still cares “plenty” about the trajectory of Micron’s gross margins, which have been negative over the past few quarters, along with those of pricing, capital expenditures and free cash flow. Back in July, Micron and Nvidia Corp. NVDA, +1.47% also announced that Nvidia was using Micron’s HBM3 Gen2 high-bandwidth memory chips in its AI data-center products.In the company’s last earnings report, Micron Chief Executive Sanjay Mehrotra called the bottom in the memory-chip market, but warned that smartphone and PC weakness could cut into AI gains.
The company came off its worst quarter ever in March, with a loss of $2.12 a share, or $1.91 on an adjusted basis.