This article was originally published on TipRanks.com
Semiconductor manufacturer Micron Technology, Inc. (MU) recently revealed that the company will open a new memory design center in Midtown Atlanta. The new site will commence operations from January 2022.
Following the news, shares of the company gained 1% in Monday’s trading session. The stock, however, pared its gains slightly to close at $82.43 in the extended trading session.
The opening of the new center will allow Micron to expand its presence in the Southeast region. Additionally, with access to the technical talent of the region, the company can enhance its memory design and engineering leadership.
Further, the community will benefit with about 500 jobs to be added with the opening of the center in fields like computer hardware and electrical and electronic engineering.
The Executive Vice-President of Technology and Products at Micron, Scott DeBoer, said, “Atlanta is an emerging hub for high-tech innovation, and our Atlanta Design Center will serve as one of Micron’s key memory design and engineering locations.”
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On December 6, Cowen & Co. analyst Karl Ackerman reiterated a Buy rating on the stock with a price target of $99, which implies upside potential of 20.1% from current levels.
According to the analyst, the company stands to benefit from the increasing importance of memory integrated circuits for data centers, automotive applications and networking system architectures. Further, majority of Micron’s business is now derived from long term agreements, which bodes well for the company.
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 16 Buys, 5 Holds and 1 Sell. The average Micron price target of $97.86 implies that the stock has upside potential of 18.7% from current levels.
Micron scores a 7 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations. Shares of the company have gained 13.5% over the past year.
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