Micron: Extended Memory Upcycle and AI-Driven Demand Support Durable Earnings Power and $400 Price Target

Timothy Arcuri, an analyst from UBS, maintained the Buy rating on Micron. The associated price target is $400.00.

Timothy Arcuri has given his Buy rating due to a combination of factors that, in his view, materially strengthen Micron’s long‑term earnings power. After a series of meetings with senior management, he concluded that the current memory upcycle is likely to last longer than past cycles, supported by significant supply tightness and structural changes in the industry. He highlights that Micron is currently unable to fully satisfy demand from major customers such as hyperscalers, and that bringing on new advanced DRAM capacity is both capital‑intensive and time‑consuming, which should help sustain favorable pricing. Reflecting this improved outlook, he meaningfully raised his earnings forecasts for Micron through 2026–2027 and lifted his price target to $400, reinforcing his positive stance on the stock.
In addition, Arcuri believes that the rise of AI is transforming memory from a low‑margin commodity into a critical, value‑adding component in computing systems. As customers increasingly view high‑performance DRAM and HBM as strategic assets, suppliers like Micron are better positioned to be compensated for superior performance rather than just volume. He points to robust growth in memory content per AI server—such as the large increase in DRAM requirements between Nvidia’s Blackwell and Rubin platforms—as evidence that demand per unit system is accelerating. Taken together, these structural demand drivers, tighter supply conditions, and improved pricing power support his view that Micron’s earnings are more durable than the market currently discounts, justifying a Buy rating.

In another report released today, Barclays also maintained a Buy rating on the stock with a $275.00 price target.

Based on the recent corporate insider activity of 96 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MU in relation to earlier this year.