Micron Price Target Doubled to $840 as DRAM Prices Surge on AI Demand
MU•Citi raised Micron's price target to $840 from $425 on expectations of higher DRAM prices driven by AI and data center demand. Micron shares have surged roughly 600% over the past year, while analysts and ETFs highlight continued supply constraints and margin upside through 2028.
1. Citi Raises Price Target
Citi raised its price target on Micron to $840 per share from $425 while retaining a Buy rating, reflecting expectations that DRAM pricing will climb as AI and data center projects drive demand.
2. DRAM Market Tightness and AI Demand
DRAM demand is tightening further due to generative AI and high-bandwidth memory requirements, with next-generation HBM modules consuming more wafers per usable bit and sustaining elevated price levels through 2028.
3. Micron Share Rally and Selloff
Micron stock climbed roughly 600% over the past year but experienced a recent pullback after supplier capacity concerns were voiced, creating a potential entry point ahead of contract repricing in the back half of the year.
4. ETF Surge Reflects Sector Interest
Investor interest in memory is underscored by the Roundhill Memory ETF’s near-100% jump in six weeks and accumulation of over $9 billion in assets, highlighting broad optimism in the sector’s supply-demand imbalance.
