Folks, I would totally agree with a Citigroup analyst Christopher Danely when he estimated Micron Technology (MU) stock as being still underperformed so far. He mentioned at least three particular cases of why this was happening. These three reasons included allegedly high capital expenditures on DRAM (dynamic random access memory, which is a type of semiconductor memory that is typically used for the data or program code needed by a computer processor to function), so that some equipment makers verbally stoked fears of overcapacity, high market valuation already and continuing negative comments by Micron's rival Rambus, even though the two semiconductor businesses officially ended their lasting license battle more than ten years ago. Yet, Citi’s sources re-checked DRAM order rates and found they only have increased from the server end market, the analyst wrote in a research note. As to the DRAM capex rising, Citi argued that even if it increases 20% more, it would still be 30% below the peak burden of 2022. On valuation, again, the counter argument was that Micron share price is lagging behind the average pace for the chip segment. Therefore, City has a Buy rating for Micron, with a target price at $95, against a $90-92 current range. Yet, I would personally see the target area well above $100 per share for Micron, as many analysts seemingly overlooked one specific but crucial thing, which is direct joining of Micron to the NVIDIA AI party.

Micron Technology (MU) added more than 6% to its market in the first half of this week responding to its official announcement that the company will increase production of its HBM3E (High Bandwidth Memory) chips, which will be used in NVIDIA's last generation of H200 GPUs (graphic processing units), specially designed for artificial intelligence applications. The HBM3E model consumes 30% less power than rival offerings, which is important for powerful generative AI purposes. The HBM-type chips market is led by larger NVIDIA's supplier SK Hynix, but Micron would be the second in this scale, especially since SK Hynix already sold out its 2024 inventory. HBM is Micron's most profitable product, due to its relative complexity involved in its construction. Micron now says it is going to deliver these increased performance memory chips in the next quarter. I feel, when more news would be revealed on the matter, for example during NVIDIA's GTC developer conference next month, the uptrend in Micron share price could be accelerated. Anyway, producing advanced memory chips for the AI chip king NVIDIA, and maybe also for AMD soon, would be considered by the market crowd as a privilege which may boost the market value of Micron as well, when the crowd is so mad from the entire AI agenda. So, I would also consider it a privilege to add this stock to my portfolio. Again, the third approach to peaking prices of 2021-2022 on charts is good for a potential breakthrough, according to theoretical considerations of the technical analysis. A small discount on today's pre-market trading also looks favourable to choose the right moment for a purchase.