Micron: Structurally Tight AI-Driven Memory Demand Supports Sustained Pricing Power and Buy Rating

Harlan Sur, an analyst from J.P. Morgan, maintained the Buy rating on Micron. The associated price target remains the same with $350.00.

Harlan Sur has given his Buy rating due to a combination of factors tied to structurally tight supply and rapidly expanding AI-driven demand for memory. Management communicated a very optimistic outlook for both DRAM and NAND, noting that customers are meaningfully increasing their memory and storage needs, particularly in GPU, XPU, and TPU deployments. While Micron is capacity-constrained in the near term, ongoing node transitions, efficiency gains, and faster yield improvements are expected to drive at least 20% bit shipment growth in 2026, still below the firm’s projected 30%+ demand growth, indicating a favorable supply-demand imbalance. Sur also highlights that even as new greenfield fabs come online from 2027, Micron expects to be able to supply only roughly half to two-thirds of key customers’ medium-term bit requirements, which should keep the market tight and underpin strong DRAM/HBM pricing, with J.P. Morgan forecasting nearly 60% year-over-year DRAM price increases in 2026.

In addition, Sur sees emerging demand vectors further enhancing Micron’s growth profile. Nvidia’s new Inference Context Window Storage platform and similar KV cache architectures at hyperscalers are expected to create a new, sizable source of NAND demand, without displacing customers’ planned HBM roadmaps. Management also views physical AI and robotics as a future “massive” driver of memory consumption, with next-generation humanoid robots already requiring large and rising DRAM and NAND content per unit. When extrapolated to potential volumes in the millions of units, these use cases represent a powerful incremental tailwind for Micron’s medium- to long-term revenue and margin expansion, supporting Sur’s conviction in a Buy rating on the shares.

In another report released yesterday, Piper Sandler also maintained a Buy rating on the stock with a $400.00 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.