NewStreet Research, a well-known investment bank on Wall Street, announced on August 14 that it had raised the investment rating of US memory chip giant Micron Technology to “buy” and set a 12-month target price of 1,250 US dollars for it. Boosted by this positive news, Micron Technology's stock price rose 4% to $949.83 at the close on Thursday. NewStreet Research analyst Pierre Ferragou pointed out in a report to customers that the memory chip industry is highly cyclical and profit margins fluctuate drastically, which often causes problems for downstream customers in the technology supply chain. In order to more accurately assess the company's intrinsic value, NewStreet used the “ratio of enterprise value to cost of sales” index, which can effectively filter out short-term profit margin fluctuations caused by changes in market supply and demand. Ferragou said that based on expectations for 2028 and 2030 sales costs, NewStreet estimates that Micron Technology's reasonable target price for the next 12 months is 1,250 US dollars. Analysts believe that this rating increase reflects Wall Street's optimism about Micron's long-term profitability driven by demand for AI computing power.

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