Citibank: Raises target price for Lanxitek A and H shares, quarterly report exceeds expectations and expected to benefit from demand for artificial intelligence.

Citibank has raised its target price for memory interface chip supplier Micron Technology's A shares and H shares, with the H shares seeing a nearly 49% increase. They stated that Micron Technology's first quarter performance exceeded expectations, with a strong gross profit margin of 70% offsetting the limited revenue caused by tight substrate supply. Analysts, including Kevin Chen, stated in their report that as the development of AI intelligence bodies requires higher CPU utilization, the future of Micron Technology looks even brighter. With a reasonable product lineup to meet the demands of AI infrastructure, the company is expected to be a major beneficiary of the increase in CPU demand. Citibank has raised Micron Technology's A shares target price from 205 yuan to 245 yuan, and the H shares target price from 205 Hong Kong dollars to 305 Hong Kong dollars, based on adjusted profit forecasts and valuation for 2027. H shares are relatively scarce in AI infrastructure investment targets, therefore, they tend to have a 20%-30% premium over A shares in the long term.