Large tech and AI stocks are facing headwinds, prompting analysts to identify potential buying opportunities amid the sell-off. KeyBanc’s John Vinh has highlighted Intel (INTC) and Micron (MU) as attractive investments, maintaining an overweight rating on both. He raised Intel’s price target from $65 to $70, suggesting a 35% upside from its current trading level of around $50. Vinh points to rising CPU demand driven by AI workloads as a key factor for Intel’s rebound.
Micron, which has seen a staggering 450% increase in stock price over the past year, is also positioned for growth. Vinh anticipates a 30% to 50% rise in DRAM and NAND prices due to ongoing supply constraints. He notes that Micron’s long-term agreements with customers should help stabilize its market position, although the cyclical nature of memory prices remains a concern.
Investors should consider Intel and Micron as potential buys, especially given the favorable demand outlook for CPUs and memory in the AI landscape. However, caution is warranted regarding the cyclical risks associated with memory stocks.
Source: fool.com