AI is now the bull case for the broader market—enough to even revive old tech
Micron Technology's stock has surged nearly 600% in a year, driven by demand from artificial-intelligence data centers, with analysts predicting further growth. The company's strong performance is contributing to a broader stock market rally, with S&P 500 earnings growth estimates rising from 15% to 21%.
Micron Technology's stock has jumped nearly 600% in a year, driven by demand from artificial-intelligence data centers. D.A. Davidson initiated coverage of the stock with a Buy rating and a $1,000 price target. The firm's analysts cite Micron's 'node leadership' and a longer demand cycle than expected as key factors. The demand is driven by hyperscaler data centers using Nvidia processors and Micron memory, creating a positive feedback loop. S&P 500 earnings growth estimates have risen from 15% to 21% due to strong semiconductor company performance. Analysts are revising their estimates upward as companies report better-than-expected earnings.
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