MU Stock Gets Anthropic Boost, More PT Hikes — Market Cap Holds Above $1 Trillion, But Analysts Foresee A Slide

• Mizuho and D.A. Davidson raised their price targets on MU on Thursday.
• Anthropic named Micron as one of its “strategic infrastructure partners” while announcing a mega funding round.
• Stocktwits sentiment for MU was ‘bullish.’

Micron Technology Inc. shares rose 1% in overnight trading ahead of Friday after additional analysts raised their price targets amid the stock’s parabolic rally, alongside a fresh vote of confidence from Anthropic. 

Mizuho raised its price target on MU to $1,150 from $800, maintaining its ‘Buy’ rating, citing its expectation of robust memory demand well into next year. The target implies a 25% upside from the last close

DRAM demand will be strong into 2027, the total addressable market for high-bandwidth memory is growing, and NAND demand is not slowing down, the research firm said in an investor note, adding that it recommends Micron as its top pick in the space.

D.A. Davidson raised the target to $1,500 from $1,000, also keeping a ‘Buy’ rating. The level implies a 62% upside. 

However, analysts’ average price target on MU remains $674.23, or 27% below the stock’s last close. Micron achieved a market capitalization of $1 trillion for the first time earlier this week. At the analysts’ projected price, the market capitalization would be $760.4 billion.

Meanwhile, Anthropic – now firmly being seen as the frontrunner in the AI space – named Micron as one of its “strategic infrastructure partners” on Wednesday. In a press statement announcing its $65 billion fundraising, Anthropic said the tie-up would help the company reliably scale its compute capacity.

MU’s Incredible Rally, Retail View

Micron makes memory and storage chips used in data centers, AI systems, PCs, smartphones, and other electronics. It is best known for its DRAM and NAND flash memory products and is viewed as a major beneficiary of the AI boom, driven by soaring demand for HBM chips amid an incredible buildout of new data centers.

MU stock has continued to soar to new highs – up 79% so far in May and 224% year to date – sparking debate over whether the stock has room to run higher. Management teams at major memory companies, including Micron, SanDisk and Seagate, have flagged supply shortages and said demand is expected to remain elevated through 2028.

The Roundhill Memory ETF (DRAM), a memory sector fund, has risen 113% since its launch on April 2.

On Stocktwits, the retail sentiment for MU remained ‘bullish’ as of late Thursday, unchanged from last week. The majority of the traders believed that the stock would run higher and were hunting for dips to accumulate.

“$MU Sell your wife, husband, children and buy the dip if there is a pullback!” a trader said in a lighter vein. Micron is scheduled to report its fiscal third-quarter results on June 24. Analysts expect revenue to increase 263% to $33.8 billion, which would be the highest pace on record, and adjusted profit to rise over 900% to $19.29 per share, according to Koyfin.

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