Analysts remain bullish on Micron (MU) even as the memory chipmaker plunged 8% on Monday afternoon and is down over 17% over the past five days. Melius Research has just raised its MU price target by 57% to $1,100, which is the highest from Wall Street analysts tracked on TipRanks.
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Trade SNDK with leverageOn Monday, Melius Research analyst Ben Reitzes maintained his Buy rating on MU stock and lifted his price target from $700 to $1,100, suggesting roughly 65% upside in the months ahead. The analyst noted that his team feels “incrementally good” about memory and AI semiconductor companies despite no major encouraging sign from President Donald Trump’s two-day trip last week to Chinese counterpart Xi Jinping.
Micron Stock Rides Solid Demand to Record High
Reitzes believes that as AI-driven demand continues to cause supply bottlenecks, chipmakers such as Micron, SanDisk (SNDK), Advanced Micro Devices (AMD), Intel (INTC), Marvell (MRVL), and Qualcomm (QCOM) will continue to capture more market value compared to traditional software companies or non-chip players in the Magnificent Seven.
He raised his long-term estimates and price targets for these semiconductor companies. The analyst’s massive budget upgrade comes about less than two weeks after Micron’s shares hit a record high, riding on several factors, including strong demand for its memory products.
Citi Expects DRAM Price Hike from Micron
Similarly, Citi analyst Atif Malik on Monday also reaffirmed his Buy rating on MU stock and nearly doubled his price target, from $425 to $840, predicting roughly 26% upside ahead.
The five-star analyst noted that he expects Micron to raise the price of its DRAM (Dynamic Random Access Memory) chips by 40% during the calendar second quarter of this year. He noted that rival Samsung (SSNLF) made a bigger such move during the first quarter: a 100% price hike.
Is Micron Stock a Good Buy?
Across Wall Street, Micron’s shares continue to enjoy a Strong Buy consensus rating from analysts. This is based on 27 Buys and three Holds issued over the past three months.
However, the average MU price target of $638.52 suggests about 6% downside risk in the months ahead.
