Mizuho Raises Price Targets on AI Chip Stocks Micron, Texas Instruments, STMicro

Mizuho analyst Vijay Rakesh raised his price targets on Micron Technology (MU), Texas Instruments (TXN), and STMicroelectronics (STMPA) this week, arguing that AI data center demand is creating durable tailwinds for both analog chips and memory in ways the market hasn't fully priced in yet.

Recommendation Changes

• Micron (MU): Price target raised from $150 to $180.
• Texas Instruments (TXN): Price target raised from $200 to $220.
• STMicroelectronics (STMPA): Price target raised from $45 to $55.

Analyst Rationale

Rakesh believes demand for memory and analog chips used in AI data centers will remain strong over the long term, contrary to some investors who view the current boom as temporary. He highlighted competitive advantages for each company, such as Micron's HBM technology and Texas Instruments' broad analog portfolio.

Context

The upgrades follow a strong year for semiconductor stocks, though some analysts remain cautious about elevated valuations. Micron shares have risen about 60% over the past 12 months, while Texas Instruments is up 25%.

What to Make of It

Mizuho's upgrades reflect growing confidence in the AI-linked semiconductor space, but investors should weigh these positive views against risks of high valuations and cyclical volatility.