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Micron Hits New Records as AI Memory Crunch Drives Street-High $1,000 Target

An acute shortage of high‑bandwidth memory is driving price hikes that boost earnings.

Overview

  • Micron shares jumped more than 14% Friday after DA Davidson set a $1,000 price target, sending the stock to fresh intraday highs in a broad AI chip rally.
  • Mizuho’s Vijay Rakesh lifted his Micron target to $740 earlier in the week, reinforcing a rapid re‑rating as investors price in stronger profits from AI data center demand.
  • Contract pricing leapt in April, with DRAM up about 57% versus first‑quarter averages and NAND up roughly 65% to 70%, reflecting scarce supply and stronger bargaining power for memory makers.
  • Micron says its high‑bandwidth memory, the fast stacked chips paired with AI processors, is sold out through 2026, and the company has begun shipping a 245TB 6600 ION SSD for AI and cloud storage.
  • Bernstein cautioned that very high prices could push some equipment makers to trim orders, which could slow price gains into the second quarter of 2026 even as it keeps a Buy rating on the stock.