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Here’s What Analysts Expect from Micron Stock
Recently, D.A. Davidson analyst Gil Luria initiated coverage of Micron stock with a Buy rating and a Street-high price target of $1,000, implying 38% upside potential from current levels. The 4-star analyst noted that while investors understand how the AI era has improved the prospects for memory, many still view Micron as a “flat, highly cyclical business, that as such can trade at less than 10x.” However, Luria added that investors are recognizing the higher profitability from high-end HBM (high-bandwidth memory), the oligopoly in the DRAM market, and the stability provided by longer-term contracts.
That said, he believes investors are still underestimating how AI will drive massive long-term demand for memory, as larger and more advanced AI models require significantly more memory.
Meanwhile, Bank of America analyst Vivek Arya raised his price targets for several semiconductor stocks. Specifically, Arya boosted his price target for Micron to $950 from $500, suggesting 31% upside potential. The 5-star analyst cited a much stronger mid-term pricing outlook in support of his revised price target. Arya is bullish on semiconductor stocks amid a strong AI infrastructure capex outlook and increased his 2030 AI data center systems total addressable market (TAM) estimate to about $1.7 trillion from nearly $1.4 trillion. Despite the recent rally in memory stocks, Arya expects memory demand to continue outpacing supply, driven by AI. He also expects memory pricing to generally hold up and earnings to remain relatively steady through 2028.
