Micron Technology (NASDAQ: MU) stock turned out to be a solid investment over the past year with impressive gains of 75%, and this semiconductor specialist appears to have what it needs to sustain its momentum thanks to its growing prominence as an artificial intelligence (AI) play.

Brokerage and investment banking firm Stifel Financial has upgraded Micron stock to buy from hold. Analyst Brian Chin now has a price target of $120 on Micron, up significantly from the earlier target of $80. The upgraded price target points toward a 25% upside from current levels.

AI is a big reason behind Chin's analyst upgrade. Chin's research note pointed out that Micron has now joined the AI party, which is not surprising as Micron's high-bandwidth memory (HBM) has already been selected by Nvidia for deployment in its next-generation AI chips. But that's not where the good news ends.

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Source Fool.com