Shares of Micron Technology (NASDAQ:MU) climbed more than 4% in premarket trading on Monday after several Wall Street analysts raised their price targets, citing continued strength in memory chip pricing and solid demand tied to artificial intelligence workloads.
An analyst at RBC Capital Markets, Srini Pajjuri, lifted his target price to $525 from $425 while maintaining an Outperform rating, noting that forecasts are being revised upward due to improving pricing trends.
“We are raising estimates significantly on continued pricing strength. The key question is about duration—our base case is for pricing to increase through CY26,” Pajjuri wrote.
He added that although pricing for DDR memory—the standard DRAM used in personal computers and servers—may eventually stabilize, “tailwinds from HBM pricing and content should continue through CY27.”
Separately, TD Cowen analyst Krish Sankar raised his price target to $500 from $450 and reiterated a Buy rating. He expects Micron to report results above market expectations and sees further expansion ahead.
Sankar said his projections call for earnings per share of $65 in calendar 2026 and $90 in 2027, while emphasizing that sustained pricing strength will be critical for additional upside.
“Our field work supports this – DRAM remains the tightest market over next 2 yrs (followed by HDDs, then NAND), suggesting similar LTA momentum in DRAM to HDDs is achievable,” Sankar wrote.
He also said a major catalyst for the stock could come from a “re-rating via durability of pricing/earnings,” explaining that investors currently apply what they see as a trough valuation multiple to what they believe are peak earnings.
Baird analyst Tristan Gerra likewise increased his price target to $500 from $443 and kept an Outperform rating, highlighting sharply rising DRAM prices alongside constrained supply conditions. Gerra expects tight supply to persist as AI-driven computing demand continues to accelerate.
According to Gerra, DRAM prices could more than double sequentially during the current quarter and climb further in the next quarter, while supply growth remains limited. With most new memory production capacity being directed toward high-bandwidth memory used in AI chips, the market outlook points to a “very tight” supply environment through 2027.
Micron shares have surged nearly 50% so far this year and have more than quadrupled over the past twelve months, as demand linked to artificial intelligence has driven both memory prices and sales higher. Developers working on AI technologies are seeking chips faster than manufacturers can supply them, creating shortages in memory components and pushing prices higher across the industry.
Micron is scheduled to release results for its fiscal second quarter of 2026 after markets close on Wednesday.
The company also announced Monday that it plans to construct a second manufacturing facility in Taiwan at the Tongluo site recently acquired from Powerchip Semiconductor Manufacturing Corp. The new plant is expected to increase production of advanced DRAM products, including high-bandwidth memory, to meet growing demand from AI applications.
Micron added that it has finalized the acquisition of PSMC’s Tongluo P5 site, and the upcoming facility will be comparable in scale to its existing fabrication plant located in Miaoli County.