Micron stock (MU) just got another powerful catalyst for Q2 2026. On Tuesday, May 12, 2026, 5-star analyst Mark Li from Bernstein released a new report maintaining his buy rating for the company with a price target of $510.00. This update comes as the stock hits a record high of $795.33, driven by a massive need for the hardware that powers artificial intelligence. Mark Li forecasts ‘tightening supply conditions’ for the global memory chip market, signaling that the company is in a prime position to benefit from rising costs.
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Mark Li Forecasts Tightening Supply Conditions
The analyst explained that the companies building these chips cannot keep up with how fast the world wants to buy them. In his report released this morning, he stated that “memory chip contract prices will soar significantly in the second quarter of 2026 due to tightening supply conditions in the DRAM and NAND markets.”
This suggests that Micron will be able to charge much higher prices for its products throughout the rest of the year.
Supply Constraints Helped Fuel Micron’s Record Profits
The current growth in the market is caused by the physical lack of available chips. Because it takes several years and billions of dollars to build a new chip factory, there is a delay in how fast companies can create more supply.
Li noted that “these supply constraints are expected to drive price increases, particularly in server DRAM and enterprise solid-state drives.” Since AI models need massive amounts of data storage to work, big tech firms are competing to buy every available chip, which keeps prices very high.
While the current price of $795.33 has moved past the analyst’s $510 target, Mark Li continues to view the company as a leader in the industry. Other banks such as Deutsche Bank (DB) have recently raised their own targets to as high as $1,000 as the company’s value approaches $900 billion.
Is Micron a Good Stock to Buy Today?
Turning to Wall Street, the analysts’ consensus rating for Micron is Strong Buy, based on 27 Buys and three Hold ratings over the past three months. With that comes an average MU stock price target of $591.67, representing a potential 25.6% downside for the shares.
