New Street Research upgraded Micron Technology (MU) to Buy from Neutral. The firm forecasts Micron’s market capitalization could reach $2 trillion to $3 trillion by 2030. Micron shares rose more than 2% on Friday following the announcement.
Analysts expect artificial intelligence to constitute two-thirds of total memory demand. The firm projects annual industry growth of 15% beyond 2030, up from the 10% average recorded over the last 20 years. New Street argues that high-bandwidth memory (HBM) deserves a premium valuation because it is less cyclical than traditional DRAM. The firm models that Micron could generate over $150 billion in annual free cash flow by 2030.