The most obvious AI pick is Nvidia (NASDAQ:NVDA) but maybe it’s too obvious. For a less crowded trade, I encourage you to take a look at Micron Technology (NASDAQ:MU). I’ve previously set a $150 price target on Micron Technology stock and now, I expect it to reach that target fairly soon.
The Semiconductor Industry Association Micron Technology estimates that U.S. chip-manufacturing capacity will triple by 2032.
To seize this opportunity, it’s fine to own some Nvidia stock, but it’s smart to diversify your holdings beyond just one stock. With that in mind, let’s delve into Micron’s new chip that could be a game changer in 2024.
Micron Technology’s Alphabet Soup Chip
Micron Technology just unveiled a new, ultrapowerful chip that’s designed to handle intense workloads for AI applications in Lenovo (OTCMKTS:LNVGY) laptops.
It’s called the Crucial LPCAMM2, and it “features LPDDR5X mobile memory to level up laptop performance for professionals and creators.”
According to Micron, the LPCAMM2 consumes “up to 58% less active power and with a 64% space savings compared to DDR5 SODIMMs.” That’s a lot of capital letters, so I’m just going to call it the “alphabet soup chip” for now.
With a “thinner, fan-less design,” this new chip will be used in Lenovo’s ThinkPad P1 Gen 7 laptops. However, it could become the gold-standard memory chip for AI-compatible workstations (i.e., desktops and laptops).
I feel that this is a significant but underreported news item that will have a positive long-term impact on Micron Technology.
A Micron Technology Skeptic Turns Bullish
As I mentioned earlier, I’m looking for Micron Technology stock to reach $150 in the near term. Coincidentally, Baird analyst Tristan Gerra recently set a $150 share-price target for Micron (up from $115 previously), along with an upgrade from “neutral” to “outperform.”
This is notable because Gerra had maintained a “neutral” rating on Micron Technology since March 2021. “While catching the train a bit late, we see meaningful upside opportunities ahead for Micron,” Gerra explained.
Better late than never, as the old saying goes. With this upgrade, Gerra joins the vast majority of bullish analysts covering Micron. Impressively, 24 out of 25 analysts assigned a “buy” or equivalent rating to Micron Technology stock in the past three months.
Citigroup analysts reiterated their “buy” rating and assigned a $150 price target to Micron shares. So, for the time being, $150 seems to be the magic number.
Micron Technology Stock: Not Named Nvidia, but Still Worth Owning
It makes sense to have some portfolio exposure to AI-enabled hardware in 2024. You can diversify your holdings in this area by investing in both Nvidia and Micron Technology.
$150 is a realistic target for Micron Technology stock. So, feel free to purchase a few shares before the stock reaches that price.
Then, you can start looking at new price targets as Micron Technology continues to advance its AI memory-chip technology.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
