Micron’s AI Memory Rally Sparks $1,000 and $950 Price Targets, 35% Pullback Risk
MU•Micron’s stock has surged over 100% since April lows on strong demand for HBM memory in AI infrastructure, with DA Davidson raising its price target to $1,000 despite technical warnings of a potential 35% correction. Bank of America also lifted its Micron target from $500 to $950, citing capital and geopolitical constraints on memory supply and forecasting the AI data center addressable market will reach $1.7 trillion by 2030.
1. Rally Driven by HBM Demand
Micron’s stock has climbed more than 100% since hitting April lows, fueled by robust demand for high-bandwidth memory modules used in AI training and inference workloads.
2. Technical Signals and Correction Risk
Momentum indicators and volume trends are showing bearish divergence, raising the prospect of a roughly 35% pullback if selling pressure intensifies amid stretched valuations.
3. DA Davidson’s $1,000 Target
DA Davidson analysts have set the highest Wall Street target at $1,000, citing locked-in memory demand through 2027 and a major capacity expansion program slated to double output by 2028.
4. Bank of America’s Supply Constraints Thesis
Bank of America boosted its Micron price target from $500 to $950, highlighting limited supply elasticity due to capital, packaging and power constraints, and forecasting a $1.7 trillion AI data center market by 2030.
