Micron Technology (MU) has made it to the list of top stock picks for 2024 due to its impressive performance in the first quarter. The company’s strong quarterly results and solid guidance have garnered the attention of investors. Needham analyst Quinn Bolton has reiterated a buy rating on MU stock, with an increased price target of $120. Bolton highlighted Micron’s high-bandwidth memory (HBM) trends that are significantly boosting revenue estimates. The company’s HBM3E memory solution has already sold out for the entire calendar year 2024, generating substantial revenue. Management’s projection of generating hundreds of millions of dollars of revenue from HBM3E in fiscal 2024 and driving fiscal 2025 revenue to record highs has instilled confidence in investors. Bolton expects Micron’s gross margins to increase through fiscal 2024 and into fiscal 2025, driven by favorable pricing and product mix. The analyst sees Micron as a key beneficiary of the strong data center demand, automotive semi-content, graphics, and industrial automation sectors.
Lululemon (LULU): Overcoming Macro Pressures for Growth
Athletic apparel maker Lululemon (LULU) has faced challenges due to soft sales in the U.S. caused by macro pressures on consumer spending. Despite this setback, the company reported better-than-expected results for the fourth quarter of fiscal 2023. Guggenheim analyst Robert Drbul slightly lowered his fiscal 2024 earnings per share estimates but maintained a buy rating on the stock with a price target of $525. Drbul believes that Lululemon remains the favorite growth story in 2024, despite the slow start in the U.S. market. He is optimistic about the potential for LULU to grow its domestic business and gain market share. Additionally, the analyst sees robust momentum in Lululemon’s international business, with the goal of quadrupling international revenue by fiscal year 2026 compared to 2021 levels. Drbul remains bullish on Lululemon, citing favorable secular tailwinds in health, wellness, casualization, and fitness segments.
Broadcom (AVGO): Making Strides in the AI Chip Sales Arena
Semiconductor company Broadcom (AVGO) is positioned as a key player in the generative AI wave, with a target of $10 billion in AI chip sales in 2024. Susquehanna analyst Christopher Rolland reiterated a buy rating on AVGO stock, setting a price target of $1,650. Rolland highlighted Broadcom’s innovations in AI accelerators and networking products, which are expected to drive its annual AI sales target. The company’s focus on Ethernet over InfiniBand has been a strategic move, with management confident in the competitiveness of its Ethernet products in AI applications. Broadcom’s customized chips are driving cost efficiencies in consumer AI applications, as the company collaborates with customers to co-design AI accelerator architectures for enhanced performance efficiencies. Rolland pointed out Broadcom’s successful strategic acquisitions, such as Symantec and VMware, emphasizing the company’s strength in integration and economies of scale in the semiconductor industry.
These top stock picks represent companies poised for growth and success in 2024. Each company has distinctive strengths and strategies that position them well in their respective industries. Investors looking to maximize returns in the current market environment may find these stock picks worthy of consideration.