Semiconductor companies Micron (MU) and Samsung (GB:SMSN) could benefit from new U.S. export rules that make it harder for Chinese chipmaker ChangXin Memory Technologies to compete, according to Bernstein Société Générale analysts. The U.S. Department of Commerce tightened the rules for certain memory chips, reducing the allowed size from 1z to 18nm. Since ChangXin uses slightly older technology, this change gives companies like Micron and Samsung an advantage.
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The rules also added Sophgo and PowerAir to a government list that restricts their access to U.S. technology. The U.S. suspects these companies are diverting advanced AI chips to Huawei, a Chinese tech giant, which has been a focus of U.S. national security concerns.
Commerce Secretary Gina Raimondo explained that the new rules aim to protect U.S. security by limiting China’s access to advanced semiconductors. These measures are intended to prevent companies from bypassing current regulations and to address emerging threats. Other major companies like Taiwan Semiconductor (TSM) are not expected to be affected by these updates.
Is MU a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MU stock based on 20 Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 25% rally in its share price over the past year, the average MU price target of $136 per share implies 31.3% upside potential.
