Micron Stock Analyst ‘Incrementally Positive’ On 2025 Outlook, Thanks To DeepSeek-Led China AI Boom: Retail Isn't Sold Yet

Shares of Micron Technology Inc. (MU) will be in focus as markets open on Monday after analysts at Baird expressed optimism about the company’s prospects for the rest of 2025.

Baird reiterated its ‘Outperform’ rating for the Micron stock and maintained its $130 price target, implying an upside of nearly 30% from Friday’s closing price.

The brokerage said it is “incrementally positive” on the outlook for Micron this year after a recent field trip to Asia. 

It underscored that Micron’s current valuation levels offer attractive entry point opportunities for investors looking to gain exposure to stocks with links to the artificial intelligence (AI) industry.

In its latest research note for clients, Baird highlighted that there is a recent uptick in AI-related orders from China.

This surge is driven by the launch of DeepSeek, which was made available in January this year. The brokerage’s analysts believe that this will alleviate some of the pricing pressures on DRAM modules, helping companies like Micron.

It also underscored that there is likely a push to give Micron more market share in two specific areas: high-bandwidth memory (HBM), and LPDDR5 memory markets.

Baird believes Micron stands to reap incremental gains on both revenue and gross margin fronts if it decides to capitalize on this opportunity and ramp up its HBM production capacity above the targeted levels.

However, retail sentiment on Stocktwits around the Micron stock remained divided, hovering in the ‘neutral’ (47/100) territory. Message volumes were at ‘normal’ levels at the time of writing.

MU sentiment and message volume March 17, 2025, as of 2 am ET | Source: Stocktwits

Data from Koyfin shows an average price target of $129.51.

Of the 39 analysts covering the stock, 34 had either a ‘Buy’ or a ‘Strong Buy’ rating, while four recommended investors to ‘Hold’ the stock, and one had a ‘Strong Sell’ rating.

Micron’s stock has gained nearly 20% year-to-date.

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