Deutsche Bank Lifts Micron Target to $500 as $200B Investment Stirs Cycle Worries
Deutsche Bank lifted its price target on Micron to $500 from $300, citing tightening DRAM supply and projecting shortages through 2027-2028. The company plans over $200 billion in U.S. memory chip investment this decade, while inelastic AI-driven high-bandwidth memory demand may sustain margins despite new capacity.
1. Analyst Price Target Increase
Deutsche Bank raised its price target on Micron to $500 from $300 and maintained a Buy rating, citing tightening DRAM supply conditions and elevated memory pricing.
2. DRAM Supply Forecast
The firm projects industry shortages could persist through 2027 and into 2028, which it believes will foster a structurally more favorable profitability environment for memory manufacturers.
3. Planned $200B Investment
Micron intends to invest over $200 billion in U.S. memory chip manufacturing this decade, signaling a significant capacity expansion aimed at meeting growing demand.
4. High-Bandwidth Memory Demand
Secular demand for high-bandwidth memory in AI and data center applications may support sustained pricing power and margins even as new manufacturing capacity comes online.