- Stifel said that memory pricing is hitting levels the brokerage “did not envision” as demand continues to outpace supply.
- UBS noted that Micron is trying to leverage the current market tightness into new long-term agreements that would help in some near-term pricing growth.
- The company’s shares have gained more than 33% so far this year, building on the stock’s whopping 240% increase in 2025.
Shares of Micron Technology, Inc. slid nearly 8% on Tuesday, making it the worst performer on the Nasdaq-100, as escalating tensions between the U.S. and Iran fueled a broader market sell-off. Wall Street analysts, however, are not that pessimistic on the semiconductor firm.
Despite Tuesday's pullback, Micron stock remains up more than 33% year to date, building on a staggering 240% rally in 2025. Still, some investors are growing wary that demand could cool after a sharp surge in memory chip sales tied to the artificial intelligence boom and rapid data center buildouts. At the same time, strong AI-driven demand has tightened supply, leading to shortages across multiple memory chip categories and pushing prices higher.
Wall Street Hopeful On Micron’s Growth
On Tuesday, Goldman Sachs raised the firm's price target on Micron to $360 from $235 and maintained a ‘Neutral’ rating, according to The Fly. On the other hand, Stifel on Monday upped the stock's price target to $550 from $360. Even though Goldman Sachs raised the price target, it was a downside of 5% to Micron’s last closing price, while Stifel’s stock price estimate was a nearly 45% upside.
Stifel said that memory pricing is hitting levels the brokerage “did not envision” as demand continues to outpace supply. The firm noted that the real goldmine is not only high-bandwidth memory, but server DDR5. Micron’s DDR5 RDIMM is manufactured to deliver superior performance and reliability for modern servers.
The firm said that, as evidence of the widening and persistent gap between supply and demand continues, Stifel added that it believes consensus is "wrong and too low," underestimating the slope and magnitude of upward revision potential over the coming quarters.
UBS, which raised the firm's price target on Micron to $475 from $450, said its industry checks point to strengthening pricing dynamics across both core DRAM and NAND flash memory, with the belief that shortages could last through 2026 and even into 2028, particularly for DRAM.
The brokerage noted that Micron is trying to leverage the current market tightness into new long-term agreements that would help in some near-term pricing growth, but would also result in more sustainable revenue and earnings over the next few years.
Wall Street, on average, has a ‘Strong Buy’ rating on MU, according to Koyfin, with 37 of 42 analysts rating the stock ‘Buy’ or higher, three rating it ‘Hold’, and two ‘Sell.’ The average price target on the stock is $399.61, implying a 5% upside to the last closing price. Micron’s forward price-to-earnings (P/E) ratio is currently at 9.3x, compared with Western Digital’s 22.2x and Broadcom’s 30.4x — making it a more attractive option for investors.
Micron Accelerating Shipments
The company on Tuesday announced that it has begun shipping customer samples of the industry’s highest-capacity LPDRAM module: 256GB SOCAMM2. This represents Micron’s step toward scaling AI data centers, delivering low-power memory capacity.
Micron’s 256GB SOCAMM2 delivers higher memory capacity, substantially lower power consumption, and faster performance for a variety of AI and general-purpose computing workloads.
What Is Retail Thinking About MU?
Retail sentiment on Micron improved to ‘bearish’ from ‘extremely bearish’ a day ago, with message volumes at ‘normal’ levels, according to data from Stocktwits.
A bullish user on Stocktwits said they were buying the dip and “haven’t had a loss on this ticker since like November.”
In the last 24 hours, retail message volume on Stocktwits for the stock jumped 75%, and the ticker has seen a nearly 11% spike in followers on the platform over the past year.
Shares of Micron have more than quadrupled in the last 12 months.
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