Shares of Micron Technology jumped more than 4% in premarket trading Monday following a round of upward revisions by Wall Street analysts who pointed to sustained memory-price strength and strong demand linked to AI computing.
Several brokerages increased their price targets and reiterated positive ratings, citing a mix of pricing momentum in DRAM and HBM, tight supply conditions, and anticipated earnings upside over the next several years.
Analyst revisions and the case for pricing durability
RBC Capital Markets raised its price objective to $525 from $425 while keeping an Outperform rating, stating that estimates are being pushed higher as pricing trends strengthen. The analyst described the central question as the duration of the pricing upswing, and said the firm expects pricing to increase through calendar year 2026 under its base case.
The RBC note added that while standard DDR DRAM - commonly used in PCs and servers - is expected to moderate eventually, tailwinds from HBM pricing and content should remain supportive through calendar year 2027.
TD Cowen followed with its own upgrade, raising its target to $500 from $450 and reiterating a Buy rating. That analyst projected Micron to report results above consensus and modeled earnings per share of $65 for calendar 2026 and $90 for calendar 2027, while flagging that the persistence of pricing would be critical for further upside.
TD Cowen also reported field work suggesting DRAM will be the tightest segment over the next two years, followed by hard disk drives and then NAND, implying similar long-term average momentum in DRAM as has been seen in HDDs could be achievable.
Baird raised its target to $500 from $443 and maintained an Outperform rating, pointing to rapidly rising DRAM prices and constrained supply. That analyst expects the industry to remain tight as AI-related computing demand accelerates.
Supply dynamics and product mix
Analysts noted that DRAM prices are projected to more than double sequentially in the current quarter and to rise further in the following quarter as supply growth remains limited. They emphasized that a large share of new memory capacity is being allocated to high-bandwidth memory designed for AI chips, which supports a very tight supply environment through 2027.
Micron reported that it plans to build a second manufacturing facility in Taiwan at the Tongluo site it recently acquired from Powerchip Semiconductor Manufacturing Corp. The company said the new facility will increase supply of advanced DRAM products - including HBM - to meet mounting AI-related demand.
Micron also confirmed completion of the acquisition of PSMC Tongluo P5 site and said the new plant will be of similar scale to its existing fabrication facility in Miaoli County.
Market reaction and near-term calendar
Micron shares have surged nearly 50% so far this year and have more than quadrupled over the past 12 months, driven by higher sales and rising memory prices as AI developers press for chips faster than factories can supply them, creating shortages and upward pressure on component pricing.
The company is set to report results for the second quarter of fiscal 2026 after markets close on Wednesday.
Summary of analyst views
- Upward revisions in price targets reflect expectations of sustained pricing and stronger-than-expected earnings.
- DRAM is viewed as the tightest market over the next two years, with HBM content supporting further pricing strength.
- Limited supply growth and allocation of new capacity to HBM contribute to the expectation of continued tightness in memory markets through 2027.
Note on investment tools
The article noted that algorithmic screening tools and AI-driven strategies evaluate MU alongside other companies using a range of financial metrics to identify risk-reward opportunities. Such tools assess fundamentals, momentum, and valuation to surface names that meet their criteria.