Micron Gains Over 2% As Appaloosa Increases Stake 250% and DRAM Tightness Drives Growth Outlook
Micron stock climbed over 2% on Friday as DRAM supply constraints bolster AI memory pricing power and institutional inflows surged, with Appaloosa Management boosting its stake by 250%. JPMorgan forecasts 20% bit shipment growth for DRAM and NAND in 2026 and maintains a $350 price target.
1. Stock Performance and Institutional Inflow
Micron shares rose 2.49% on Friday and have gained 332% over the past 12 months and 106% over the last three months, outpacing the PHLX Semiconductor Index. David Tepper's Appaloosa Management increased its Micron position by 250% while trimming holdings in Nvidia and Amazon.
2. Supply Constraints Fuel Pricing Power
Tightening supply of next-generation DRAM, particularly high-bandwidth memory for AI applications, is expected to sustain pricing power and support margin expansion. Institutional buyers and bullish market sentiment are reinforcing expectations that demand will outstrip available capacity into the next decade.
3. Analyst Forecast and Growth Outlook
JPMorgan maintains an Overweight rating and a $350 target, citing limited clean-room capacity as a constraint on supply growth. The bank projects at least 20% growth in bit shipments for both DRAM and NAND in 2026, driven by node transitions, production efficiency improvements, and accelerated yield ramps.