Twelve investment banks raised Micron Technology (MU.O) price targets ahead of
the company’s earnings, citing AI-driven data‑centre demand, tight DRAM/NAND
supply and rapidly rising ASPs. Morgan Stanley raised its PT to $1,050 from
$520, kept overweight and raised Q3 forecasts, expecting DRAM and NAND ASPs to
rise roughly 20% QoQ. Wedbush lifted its PT to $1,300, raised FY guidance to
$22.84 EPS (from $19.16) and revenue to $38.5bn (from $33.5bn), and also sees Q3
DRAM/NAND prices up ~20% QoQ. Deutsche Bank raised its PT to $1,500, maintained
buy, and said DRAM shortages could persist into 2028 or beyond; it models Q3
revenue at $35.1bn (above Micron’s guide upper $34.25bn) and sees 2027 EPS near
$160 with gross margins above 80%. Citi bumped its PT to $1,200, expects
elevated storage pricing into 2027—especially HBM—and projects DRAM ASPs could
rise ~200% this year. Stifel raised its PT to $1,500, saying current DRAM ASPs
are roughly double Micron’s initial model; data‑centre contract pricing has
exceeded $2.50/GB and consumer pricing remains above $1.50/GB, implying a ~20%
QoQ revenue jump. Jefferies flagged severe HBM tightness (global monthly wafer
capacity ~330k today, ~480k by 2027 while near‑term demand could rise ~70%) and
projects Micron Q3 storage ASPs +40–50% QoQ, Q4 +30–40%, and 2027 ASPs up
~40–45% YoY. Bernstein, Needham, Hina International, Wells Fargo, Goldman and
other houses also materially raised targets (PTs now spanning roughly
$900–$1,750) and reiterated that sustained supply constraints and strong
AI-related demand should keep pricing and margins elevated through 2027, with
some firms extending shortages into 2028.
