Micron Price Targets Up to $1,100 on Multi-Year Memory Shortage
MU•Morgan Stanley lifted its Micron target to $1,050 from $520 and Raymond James to $1,100 as forecasts indicate a memory chip shortage lasting several years, fueling strong pricing, margins and AI chip demand. The $852.12 average Wall Street target suggests downside potential despite the stock’s sharp rally.
1. Analyst Price Target Revisions
Morgan Stanley raised its price target to $1,050 from $520 and maintained a Buy rating, citing prolonged supply constraints. Raymond James followed with a target increase to $1,100 after checks indicated locked-in memory supply for years.
2. Forecasted Multi-Year Memory Shortage
Industry projections show the memory chip shortage could persist for several years, underpinning sustained pricing power and margin improvement across DRAM and NAND segments. Tight supply is expected to bolster earnings as capacity expansions lag demand growth.
3. Stock Rally Versus Valuation
Shares have surged nearly 100% over the past month, lifting Micron beyond a $1 trillion market cap. Despite this rally, the $852.12 average target across analysts implies potential downside from current levels.
4. AI-Driven Demand Outlook
Demand for AI-specific memory chips continues to accelerate, driving expectations for further capacity investments and revenue growth. Investors are assessing how much AI-driven upside remains unpriced in the current share valuation.
