Micron Technology (MU) is one of the top stock picks favored by Wall Street analysts for long-term growth. The company’s strong quarterly performance and solid guidance have impressed investors, particularly with the increasing demand from the artificial intelligence boom. Needham analyst Quinn Bolton reiterated a buy rating on MU stock and raised the price target to $120 from $100 following the beat-and-raise quarter. The company’s high-bandwidth memory (HBM) trends are seen as a significant driver for boosting revenue estimates. Management’s commentary on generating substantial revenue from HBM3E in fiscal 2024 and driving fiscal 2025 revenue to record highs has garnered positive attention. In addition, the expectations for increased gross margins through fiscal 2024 and into fiscal 2025 further support the bullish outlook for Micron. Bolton believes that the rebound in the memory cycle in 2024 will benefit the company in the long run as strong data center demand, automotive semi content, graphics, and industrial automation continue to drive growth.
Lululemon (LULU) is another stock pick recommended by analysts for its potential growth in 2024. Despite a slower start to the first quarter in the U.S., the company’s management remains optimistic about its ability to grow the domestic business and gain market share. The international business also showed robust momentum in the fourth quarter, with expectations of quadrupling international revenue by the end of fiscal year 2026. Guggenheim analyst Robert Drbul slightly lowered his earnings per share estimates for LULU to reflect the macro backdrop in the U.S. and higher marketing investments but maintained a buy rating on the stock. The company’s focus on favorable secular tailwinds in health, wellness, casualization, and fitness, including at-home activities, gives it a competitive edge in the market. Drbul’s firm considers LULU as the favorite growth story in 2024, despite the recent soft sales outlook in the U.S.
Broadcom (AVGO) is a tech giant that has garnered attention for its potential growth in 2024 as one of the key beneficiaries of the generative AI wave. The company aims to achieve $10 billion in AI chip sales in 2024, backed by its innovative portfolio across AI accelerators and networking products. Susquehanna analyst Christopher Rolland reiterated a buy rating on AVGO stock with a price target of $1,650 after the recent investor meeting. The company’s ability to meet its annual AI sales target and its focus on Ethernet over InfiniBand for AI applications have impressed analysts. Broadcom’s strategic acquisitions, including Symantec and VMware, further strengthen its position in the semiconductor industry. Rolland’s positive outlook on Broadcom’s cost efficiencies in consumer AI applications and its customized chip design for enhanced performance efficiencies highlight the company’s potential for long-term growth.