As investors brace for Micron Technology Inc.'s (NASDAQ:MU) earnings report, Futurum Group CEO Daniel Newman argues that artificial intelligence has fundamentally transformed the memory market, backing his firm’s $1,500 price target on the stock despite a sharp selloff on Tuesday.
AI Memory Demand Is Reshaping The Industry On Tuesday, in a post on X, Newman shared a clip from his appearance on Yahoo Finance on which he said the era of memory as a commodity business is over, describing memory as "strategic" infrastructure in the AI economy.
Newman compared today's memory market to the early stages of Nvidia Corp.'s (NASDAQ:NVDA) AI-driven rally, saying memory chips have become the "GPU of three years ago" due to supply constraints and surging demand.
According to Newman, the key question heading into Micron's earnings is whether the company can continue delivering exceptionally strong profitability as demand for advanced AI memory remains elevated.
He noted that Micron and rivals Samsung Electronics (OTC:SSNLF) and SK hynix have benefited from limited supply and strong pricing power, allowing margins to expand significantly.
