Micron (MU) Stock: Price Target Raised to $330 as Memory Shortage Fuels Rally

TLDR

• Bernstein raised Micron’s price target from $270 to $330, with the stock already trading near $315 at record highs after delivering 262% returns last year
• Memory chip prices are climbing rapidly due to tight supply and surging AI infrastructure demand, with Samsung’s co-CEO calling the shortage “unprecedented”
• Analysts from multiple firms see continued upside, with price targets ranging from $300 to $500, though most acknowledge the easy gains are narrowing
• Memory chipmakers are diverting manufacturing capacity to high-bandwidth memory for AI servers, squeezing supply to other sectors like smartphones and USB drives
• CEO Sanjay Mehrotra expects memory markets to remain tight past 2026, with analysts predicting the “supercycle” could last into 2027

Bernstein bumped its price target on Micron Technology to $330 from $270. The stock currently trades near $315, close to record highs.

Micron Technology, Inc., MU

The upgrade follows a monster year for Micron. The stock delivered 262% returns in 2025, crushing most AI chip names.

Over the past three months alone, Micron climbed 72%. Meanwhile, Nvidia barely moved.

The reason behind the rally is straightforward. Memory chip prices are rising fast while supply stays constrained.

Bernstein points to durable pricing power as the key driver. Tight supply meets growing AI demand, creating a rare setup.

Micron is selling the bottleneck in the AI stack. While others chase flashy GPUs, Micron provides the memory that makes it all work.

That positioning gives the company genuine pricing leverage. And right now, demand is slamming into limited supply.

Memory Shortage Hits Unprecedented Levels

Samsung co-CEO TM Roh called the current memory shortage “unprecedented” in a Reuters interview. Other industry leaders echo that view.

The constraint could persist for months or even years. AI infrastructure buildout is consuming available supply at breakneck speed.

Chipmakers are diverting manufacturing capacity toward high-bandwidth memory for AI servers. That shift squeezes supply to other sectors.

Flash chips for USB drives and smartphones are feeling the pinch. Prices in some segments more than doubled since February 2024, according to TrendForce.

Traders are betting the rally has further to run. Shares of memory chipmakers jumped across the board on Monday.

SK Hynix and Samsung closed up nearly 3% and 7.5% respectively. Micron rose about 2% in early trading.

Western Digital, Applied Digital and Seagate Technology all climbed more than 3%. SanDisk added about 1.5%.

Analysts Keep Hiking Targets, But Easy Gains Are Narrowing

Multiple analysts see room for upside despite Micron’s run. However, that gap is tightening with the stock near $315.

Rosenblatt holds the highest target at $500, up 58.7% from current levels. The firm says AI has turned memory into a must-have layer.

Bank of America set a $300 target and upgraded the stock to Buy from a previous $250 target. That represents a 4.7% downside from current prices.

JPMorgan and Morgan Stanley both set $350 targets, implying 11.1% upside. Both firms cite the AI-memory supercycle and blowout earnings.

HSBC initiated coverage with a $330 target at Buy. The bank frames Micron as a critical beneficiary of tight AI-memory supply.

KeyBanc holds a $325 target and reiterated Overweight. The firm argues AI and data center demand continues outstripping supply.

CEO Sanjay Mehrotra said last month he expects memory markets to remain tight past 2026. That timeline suggests sustained pricing power.

Analysts from Morningstar and J.P. Morgan estimate the current “supercycle” might persist into 2027. Memory is a cyclical industry known for extreme swings.

The current upturn combines unusual demand strength with supply constraints. That combination rarely lasts forever, but the runway appears long for now.

Samsung’s shares more than doubled in value last year. SK Hynix jumped nearly four-fold, showing the entire sector is catching fire.

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