MU Stock Garners Attention Amid Analyst Target Hikes — How Much Upside Does Retail Expect?

• TD Cowen raised its price target on the firm to $450 from $300, while maintaining a ‘Buy’ rating on the shares.
• Stifel increased Micron’s target to $360 from $300 with a ‘Buy’ rating.
• On Jan. 17, Micron announced that it was buying Taiwan-based Powerchip Semiconductor’s P5 fabrication site for $1.8 billion.

Shares of Micron Technology Inc. (MU) garnered significant attention on Wall Street and among retail, shortly after the company announced the acquisition of a Taiwanese chip-fabrication plant.

TD Cowen raised its price target on the firm to $450 from $300, while maintaining a ‘Buy’ rating on the shares, representing an upside of over 22%. Meanwhile, Stifel increased Micron’s target to $360 from $300 with a ‘Buy’ rating, according to TheFly.

On Jan. 17, Micron announced that it was acquiring Powerchip Semiconductor Manufacturing Corporation’s P5 fabrication site for $1.8 billion.

Shares of MU climbed over 3% on Tuesday at the time of writing.

Street Optimism

TD Cowen said that the firm sees memory shortages worsening, thus adding a further upside to the company’s 2026 earnings power. The analyst suggested to investors in a note that Dynamic Random Access Memory (DRAM) and NAND Flash shortages are compounding, likely to lead to a higher pricing outlook in the second half of 2026, adding that Micron shares may continue to outperform peers in the near term.

According to a TrendForce report, conventional DRAM contract prices in the first quarter (Q1) of 2026 will increase up to 60% quarter-on-quarter while NAND Flash prices are expected to jump up to 38%.

Meanwhile, Stifel analyst Brian Chin said the firm remains “upbeat” on the favorably tight memory market conditions in FY26 and beyond, adding that there were no changes to its modelling.

Taiwan Fab Site

Micron’s fab site acquisition from Powerchip Semiconductor will add about 300,000 square feet of 300mm fab cleanroom that will enable the company to address growing global demand for memory solutions, Micron said.  

The deal, expected to close by the second quarter (Q2) of 2026, is expected to contribute to meaningful DRAM wafer output beginning in the second half of 2027, as per the company.

“This strategic acquisition of an existing cleanroom complements our current Taiwan operations and will enable Micron to increase production and better serve our customers in a market where demand continues to outpace supply,” said Manish Bhatia, executive vice president of global operations at Micron Technology. “The Tongluo fab’s close proximity to Micron’s Taichung site will enable synergies across our Taiwan operations.”

Micron’s first quarter (Q1) results highlighted the growing demand for high-bandwidth memory (HBM) and high-density DRAM have become binding constraints in AI systems. Micron reported $13.64 billion revenue for the quarter, up over 20% from the same period last year, with its cloud memory business clocking more than $5.2 billion in revenue and a profit margin of 66%.

The company provided a revenue guidance of $18.7 billion plus or minus $400 million for the second quarter and adjusted earnings per share of $8.42 plus or minus $0.20, both above consensus estimates as seen on Fiscal AI.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around MU stock jumped to ‘bullish’ from neutral territory at the time of writing amid ‘high’ message volumes.

One bullish user called MU stock a ‘juggernaut’.

Another user called the stock’s growth a ‘supercycle’, while expecting its price to go over $1000 in the next 12-18 months. MU shares were trading around $374.24 at the time of writing.

However, some retail investors warned of the impact that geopolitics and Trump’s tariffs might have on the stock.

Shares of MU have gained over 242% in the past year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.
 

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