Analysts Lift Micron Price Targets to $450–$500 on Prolonged DRAM Shortage

Overview

• Deutsche Bank raised Micron’s price target to $500 on February 10 and kept a Buy rating, citing tightening DRAM supply and elevated pricing, with shortages projected to extend into 2027–2028.
• Needham increased its target to $450 on February 17 and maintained a Buy call, pointing to persistent market tightness, hyperscaler capex, and larger AI models that drive higher‑performance memory needs.
• Morgan Stanley reiterated a Buy rating with a $450 target on February 16, reflecting continued confidence in Micron’s demand outlook.
• Micron reported fiscal Q1 2026 revenue of $13.6 billion, up 21% sequentially and 57% year over year, with gross margin at 56.8% and record free cash flow of $3.9 billion.
• Company commentary highlighted an unprecedented memory shortage and AI memory products that are fully booked for 2026, underscoring sustained pricing power across end markets.