Micron (MU) Shares Get Bullish Target Hike as DRAM Prices Accelerate

Core Viewpoint - Micron Technology, Inc. is experiencing significant interest in its stock due to strong demand for DRAM and flash memory, particularly driven by AI applications, with analysts projecting sustained pricing strength through 2026 [1][2]. Group 1: Price Target and Analyst Ratings - Bernstein SocGen Group analyst Mark Li raised Micron's price target to $330.00 from $270.00 while maintaining an "Outperform" rating, indicating confidence in the company's future performance [1]. - Analysts expect DRAM prices to continue rising from early 2026 due to increased demand from AI-driven data centers, despite a forecast normalization in 2027 [2]. Group 2: DRAM Pricing and Market Dynamics - Firm analysts anticipate a quarter-over-quarter DRAM Average Selling Price (ASP) growth of 20-25%, supported by rising conventional DRAM prices, with Micron's FQ2 guidance suggesting even stronger near-term price increases [3]. - The anticipated price increases are attributed to a structural supply lag and constraints in capacity expansion, particularly due to limited cleanroom space [3]. Group 3: Company Overview and Investment Considerations - Micron Technology develops and sells memory and storage products for various applications, including data centers and mobile devices [4]. - While Micron is recognized as a potential investment, some analysts suggest that other AI stocks may offer greater upside potential with less downside risk [4].