Analysts Raise Micron Targets to $550 and $475 on Memory Surge
Stifel raised Micron’s target from $360 to $550 on consumer memory pricing doubling above $1/GB and forecasted server DDR5 margins exceeding 80%, while UBS lifted its target to $475. Shares rose 5.1%, extending a 36.4% year-to-date gain as analysts expect blended gross margins near mid-to-upper 70%.
1. Analyst Price Target Revisions
On March 2, Stifel boosted its Micron price target to $550 from $360, UBS raised its target to $475 from $450, and Bank of America lifted its target to $400 from $300, all maintaining Buy ratings to reflect unexpectedly strong memory pricing.
2. Memory Pricing Dynamics
Consumer memory prices have more than doubled to over $1 per gigabyte, and server DDR5 alongside high-bandwidth memory is projected to push RDIMM gross margins above 80%, underpinning forecasts of blended margins reaching mid-to-upper 70% by mid-year.
3. Stock Performance
Micron shares rose 5.1% today, extending a 36.4% year-to-date gain as AI-driven demand sustains robust pricing, prompting analysts to view existing consensus estimates as too low and revise margin expectations higher.