Micron Shares Jump 4% on Upgraded $525 Price Target, Tight DRAM Outlook
Shares of Micron jumped over 4% premarket after RBC, TD Cowen and Baird lifted price targets to $525, $500 and $500 on stronger DRAM and HBM pricing trends. Analysts forecast earnings of $65 in 2026 and $90 in 2027, citing tight memory supply and AI-driven demand sustaining prices through 2027.
1. Broker Price Target Upgrades
Analysts from RBC Capital Markets, TD Cowen and Baird raised their Micron price targets to $525, $500 and $500, respectively, reflecting renewed confidence in memory pricing dynamics.
2. Strong Memory Pricing Trends
DRAM pricing is expected to increase through calendar 2026, while high-bandwidth memory prices remain robust through 2027, driven by rising AI workload demand and constrained capacity.
3. Earnings and Valuation Outlook
Projected earnings per share of $65 for 2026 and $90 for 2027 incorporate pricing durability and supply tightness, suggesting potential for multiple expansion as peak earnings become more sustainable.
4. Supply Constraints and AI Demand
The DRAM market is seen as the tightest over the next two years, with most new memory capacity allocated to AI applications, sustaining a very tight supply environment through 2027.