TLDR
- Micron stock rose 3.1% in premarket Tuesday to $965.61, recovering from a 4.3% drop Monday
- KeyBanc raised its price target on MU from $1,600 to $1,750, implying 87% upside from Monday’s close of $937
- Analyst cites persistent memory shortages and tight supply conditions expected through 2027
- DRAM prices forecast to rise 15-20% in Q3, with HBM prices set to more than double next year
- Wall Street consensus sits at a Strong Buy with 29 Buy ratings and an average price target of ~$1,569
Micron Technology (MU) stock bounced back in premarket trading on Tuesday, climbing 3.1% to $965.61 after closing down 4.3% on Monday. Monday’s drop was tied to a broader chip-sector selloff triggered by a sharp decline in SK Hynix following its Nasdaq debut.
The recovery came alongside a fresh price target raise from KeyBanc, which bumped its target on MU to $1,750 from $1,600. That new target implies roughly 87% upside from Monday’s closing price of $937.
KeyBanc analyst John Vinh issued the upgrade following a supply chain trip to Asia. His note pointed to persistent memory shortages and continued strong demand from data centers as the key drivers.
Memory Prices Keep Climbing
Vinh’s forecasts are bullish across memory types. He expects DRAM prices to rise 15-20% in Q3 and a further 15% in Q4. NAND flash prices are forecast to jump 30-40% in Q3, with another 15% gain expected in Q4.
For high-bandwidth memory, the numbers get even more striking. Vinh expects HBM prices to more than double in 2027, driven by demand for the latest AI processors that rely heavily on the technology.
KeyBanc also revised its earnings estimates upward. The firm raised its current-quarter estimate to $32.36 from $31.00, its fiscal 2026 estimate to $74.47 from $73.11, and its fiscal 2027 estimate to $189.62 from $159.02.
Vinh’s $1,750 price target is based on a price-to-earnings multiple of nine times his fiscal 2027 earnings forecast for Micron.
Wedbush Backs the Upcycle
Wedbush analyst Matt Bryson echoed that view, saying Monday’s pullback does not mark the end of the memory cycle. Bryson pointed to Micron’s recently announced $3 billion investment in U.S. semiconductor supply chain buildout as a sign the company is positioning for continued demand.
He noted that customers are still flagging “stronger future requirements,” suggesting the upcycle has more room to run.
KeyBanc lists Micron as one of its “most positive” semiconductor picks. The analyst noted that tight supply is not just affecting AI hardware — it is also pulling forward demand for PCs and flagship smartphones.
The average price target across Wall Street analysts stands at approximately $1,569, according to FactSet data. MU currently holds a Strong Buy consensus rating, backed by 29 Buy ratings and just one Hold.
Micron stock has risen close to 700% over the past 12 months, making it one of the stronger performers in the semiconductor space over that stretch.
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