Shares of Micron Technology (MU) are up by 0.62% in pre-market hours on Thursday, after gaining almost 5% in the previous session. The surge came after the stock had been down by 14% in the last five days. Looking ahead, analysts remain bullish on Micron, with a bull case price target of $1,100, suggesting more than 50% upside from current levels. The average price target for Micron stands at $657.41.
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For context, Micron makes NAND chips for long-term storage like SSDs and smartphones, and DRAM chips that act as fast working memory in computers and data centers.
Micron Stock Performance
Year-to-date, MU stock has gained more than 150%, driven by growing optimism around AI-related memory demand and improving pricing trends in DRAM and NAND chips. Earlier this year, the stock came under pressure amid broader market volatility.
Most recently, the stock has remained volatile as investors reacted to concerns about global memory chip supply after Samsung Electronics (SSNLF) faced a planned 18-day workers’ strike involving more than 47,000 employees following failed labor talks over bonuses.
Despite the strong rally, Wall Street analysts remain bullish on MU’s long-term outlook. Analysts believe rising AI demand and improving memory pricing could continue supporting future growth.
Melius Research Sees $1,100 for MU Stock
Earlier this week, Melius Research’s top-rated analyst Ben Reitzes raised his price target on Micron stock to a Street-high of $1,100 from $700 while maintaining a Buy rating. Reitzes said he remains positive on memory and AI chip companies, as strong AI demand continues to tighten supply across the sector.
He noted that Wall Street may still view semiconductor-stocks">memory companies as highly cyclical chip stocks, even though AI demand is making the business more stable over time. He also pointed out that major cloud companies are signing long-term supply deals and paying upfront to secure memory, which improves revenue visibility.
Additionally, a key reason for his bullish view is Micron’s high-bandwidth memory (HBM) business. The report says HBM supply is already sold out through calendar 2027, giving MU strong pricing power and supporting higher profit margins.
Notably, Micron’s HBM business makes advanced, high-speed memory chips used in AI chips and data centers. It helps power AI models by enabling faster data processing and is in strong demand from cloud companies.
What Is the Price Target of MU Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MU stock based on 27 Buys and three Holds assigned in the past three months. The average Micron price target of $657.41 per share implies a downside of 10.19% from the current level.
