PREVIEW: Micron hits record ahead of results on AI chip optimism

Micron Technology MU.O shares climbing >1% to fresh intraday record high on Weds ahead of qtrly results due after the bell, with focus on demand for its AI memory chips

MU shares, which have now surged ~64% YTD, closed above $500 bln market-cap level for the first time on Tues

MU expected to report roughly 150% jump in fiscal Q2 rev to $20.07 bln and adj EPS of $9.31, vs $1.56 a yr ago, per LSEG

In Dec, co forecast rev well above estimates on AI chip demand; earlier this week, MU said it began high-volume production of HBM4 memory chips

TD Cowen in note on Mon said it expects MU to post a "strong beat", adding that majority of long-term stock returns could be driven by a re-rating

Stock recently traded at 9x fwd earnings, compared to the likes of Nvidia NVDA.O at 21x and AMD AMD.O at 25x, per LSEG data

Avg rating of 44 analysts is 'buy', broken down as 40 'buy' or 'strong buy' recommendations, 2 'hold' and 2 'sell'

Median PT of $450.00 is below stock's recent price of $467.87