KeyBanc Raises Micron Target to $600; SK Hynix’s $10 Billion Listing Looms
KeyBanc raised Micron’s price target to $600, highlighting 30%-50% quarter-over-quarter memory price gains and upfront hyperscaler capacity payments. Shares are down over 20% from recent highs after March saw its largest monthly drop in nearly four years, and SK Hynix’s $10 billion US ADR plans threaten fresh competition.
1. Price Target Increase
KeyBanc reiterated its overweight rating on Micron and raised the price target to $600, citing expectations for memory chip pricing to rise 30%-50% quarter over quarter. The firm also noted upfront capacity payments from hyperscale customers as evidence of robust demand and long-term agreement negotiations.
2. Recent Share Performance
Micron shares have declined more than 20% from three-week highs after March posted the company’s worst monthly performance in nearly four years. The volatility follows a 28% gain year to date and reflects investor reassessment of positioning in a cyclical memory market.
3. SK Hynix Competition Threat
SK Hynix’s planned $10 billion US ADR listing could introduce direct competition to Micron as the only US-listed pure-play memory chipmaker. An expanded US presence by SK Hynix may prompt rotation trades and pressure Micron’s market share in high-bandwidth memory segments.