Micron (NASDAQ:MU) was on track to close seventh session of gains as its shares jumped 2.19% to $113.38 on Tuesday.
In the preceding six sessions, the company’s shares gained over 13% compared to a 1.18% rise in the broader markets. On a year-to-date basis, the stock has added 33%.
The stocks set off on an upward rally on June 2, when it closed 3.94% higher. Thae jump came even as JR Research downgraded the company’s rating from Buy to Hold.
“With MU potentially undergoing a digestion phase as the AI data center buildout is expected to slow markedly, I believe turning more cautious after a surging run over the past month isn’t just apt, but also sagacious,” the analyst said.
However, ever since then more analysts have shown optimism for the stock.
Seeking Alpha analyst Yiannis Zourmpanos argued in an article that Micron’s shares are heavily undervalued given the long-term tailwinds in AI infrastructure and the company’s leading position in next-generation memory technologies.
“With a $35 billion+ total addressable market and best-in-class HBM3E chips that offer superior power efficiency and capacity, the company is carving out a defensible, high-margin niche,” the analyst said.
Looking at Seeking Alpha’s quant rating, MU has a Strong Buy rating with a score of 4.55 out of 5. The company has been rated A+ for growth and profitability. Both Seeking Alpha and Wall Street analysts maintain a consensus Buy rating on the company.