Micron Technology Inc. (NASDAQ:MU) stock rose during Friday’s premarket session as broader market sentiment improved.
A. Davidson makes a bullish valuation case for Micron.
A. Luria told CNBC on Thursday Micron trades at about six times earnings, far below Advanced Micro Devices, Inc.
(NASDAQ:AMD) and Intel Corp. (NASDAQ:INTC) at roughly 40 times or more.
Three years ago, he said, customers primarily used memory for storage. “The more memory you put to a model, the better it works.
The more memory, the faster the model works. He argues that this shift makes memory a more essential part of AI infrastructure rather than simply a storage product.
See More: Top Value Stocks Longer Contracts Could Reduce CyclicalityLuria expects more than half of Micron’s products to be sold through five-year agreements as Microsoft Corp. com Inc.
(NASDAQ:AMZN) and Alphabet Inc. Buybacks Could Add SupportLuria said Micron can resume share repurchases on Dec.
9, when restrictions on its buyback expire.
