DA Davidson Sets $1,000 Target as HBM Market to Triple by 2028
D.A. Davidson initiated coverage of Micron with a Buy rating and $1,000 target, citing AI-driven memory pricing and projecting fiscal 2030 revenue of $393 billion. Analysts foresee the HBM market tripling from $25 billion in 2025 to $100 billion by 2028, while Micron meets just 50–67% of current demand.
1. DA Davidson Initiates Coverage
D.A. Davidson launched coverage of Micron Technology with a Buy rating and a $1,000 price target, highlighting the impact of artificial intelligence workloads on extending the memory cycle and supporting firmer pricing across DRAM and NAND segments.
2. Long-Term Revenue Projections
The firm forecasts Micron’s fiscal 2030 revenue at $393 billion and earnings per share of $139, driven by a feedback loop where rising compute demand for AI fuels new use cases that further boost memory consumption.
3. HBM Market Expansion
High-bandwidth memory demand is expected to surge from $25 billion in 2025 to $100 billion by 2028, underpinned by data-center deployments and next-generation AI systems that rely on fast, energy-efficient memory solutions.
4. Production Capacity Constraints
Micron currently satisfies only 50–67% of AI-related memory demand, suggesting near-term supply shortages that could enhance pricing power for its higher-margin HBM and advanced DRAM products.