Analyst makes major change to Micron stock price target

Core Insights - Semiconductor demand is cyclical, with periods of high demand leading to oversupply when capacity is ramped up too quickly [1] - There is a critical inflection point for Micron, driven by surging spending on data centers for AI workloads, leading to increased memory prices [2][5] - Wall Street analysts, including Stifel, are raising their price targets for Micron significantly, indicating a shift in market sentiment [2][3] Industry Trends - The demand for AI data centers has led to substantial investments, with hyperscalers expected to spend $405 billion on capital expenditures in 2025 [5] - The increased compute needs for training large language models are driving demand for memory products, benefiting companies like Micron [7] - Nvidia is experiencing growth due to its chips being essential for AI applications, while server companies are enhancing their offerings to meet the rising demand [6]