Mizuho sees Micron gaining strength in memory, data center chip markets
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Memory chipmaking leader Micron Technology (NASDAQ:MU) is set up in a good position this year due to a combination of market factors such as growing product demand and signs of supplies stabilizing across the industry.

That's the opinion of Mizuho Securities analysts who spoke this week with Micron (MU) Chief Financial Officer David Zinsner and the chipmaker's investor relations director Farhan Ahmad as part of Mizuho's Virtual CES conference series. Mizuho analyst Vijay Rakesh said that after speaking with the Micron (MU) officials, he believes the company is likely to see more strength this year from prices going up for its key DRAM memory chips and gains in the data center market.
"DRAM spot pricing [was] up 10% month over month," Rakesh said, in a research note. "We believe lower memory inventories will remain a tailwind, [and] memory is one of the few markets where suppliers are not adding supply."
Rakesh, who left his buy rating and $98-a-share price target on Micron's (MU) stock unchanged, also said that Micron (MU) noted that "the broad data center market is strong, with inventory in a good position and good order visibility."
Rakesh added that Micron (MU) admitted that its DRAM plant in Xian, China has trimmed some of its production due to recent Covid-related shutdowns in the area. However, Rakesh said that plant production is expected to pick up by February and he estimated that there will "overall be no impact" from Xian plant issues on Micron's (MU) next quarterly report.
Rakesh's take on the Micron's (MU) Xian plant was in line with similar comments from Wells Fargo analyst Aaron Rakers in late December.