Top Mizuho analyst Vijay Rakesh kept his Outperform rating on Micron Technology (MU) with a $265 price target after recent talks with the company’s top leaders. He said Micron looks well placed to gain from strong demand for AI memory chips and a tight supply of DRAM and NAND through the next two years.
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It is worth noting that Rakesh ranks 35 out of more than 10,000 analysts tracked by TipRanks. He has a success rate of 66%, with an average return per rating of 30.50% over a one-year timeframe.
AI Memory Demand Remains Strong
Rakesh said demand for High Bandwidth Memory (HBM) should stay strong into 2026 and 2027, helped by rising use in AI servers. He believes about 40% of Micron’s DRAM products could see higher sales and better margins as prices improve early next year.
Micron’s next HBM4 chips, built with its own design and advanced process tech, are ramping up well. The analyst expects HBM sales to more than double year over year, giving Micron a larger role in the fast-growing AI chip market.
MU Poised to Gain from Tight Supply and Strong SSD Demand
The analyst said limited capacity in China could support memory prices over the next few years. Around 30–35% of Samsung and Hynix’s memory output is facing delays due to chipmaking rules, which could keep supply tight and help Micron benefit from firmer prices into 2027 and 2028.
He also noted that Micron’s new U.S. plants in Idaho and New York, expected to start production between 2027 and 2029, could raise its U.S. DRAM share from mid-single digits to around 20% over the next decade.
Rakesh added that demand for solid-state drives (SSDs) is climbing as AI servers need faster storage. Micron’s QLC-based eSSDs are seeing greater adoption in AI systems that require high speed and capacity. With hard drives still in short supply, SSDs are gaining more share in large data centers.
Rakesh believes Micron is “well positioned in the AI data center market,” with solid pricing trends and a strong roadmap for future products.
Is Micron a Good Stock to Buy?
Micron stock has a consensus Strong Buy rating among 29 Wall Street analysts. That rating is based on 26 Buy and three Hold recommendations assigned in the last three months. The average MU price target of $218.70 implies 8.08% downside from current levels.
