Key Takeaways:
- Raymond James raised Micron's target to $1,100 from $530, maintaining Outperform.
- The upgrade follows a wave of analyst hikes, with UBS targeting $1,625.
- Micron's market cap topped $1 trillion as AI memory demand surges.
Back
Raymond James boosts Micron target to $1,100 as analysts race higher
Raymond James raised its Micron Technology price target to $1,100 from $530, maintaining an Outperform rating on the memory-chip maker.
The revision follows a wave of analyst upgrades that have reshaped the consensus view on Micron. UBS analyst Timothy Arcuri set the Street-high target at $1,625 earlier this week, projecting earnings per share will exceed $100 through at least 2029 as AI demand strengthens the durability of long-term memory supply agreements.
The new Raymond James target implies roughly 13% upside from Micron's May 29 close of $971. The stock has surged more than 800% over the past 12 months, pushing its market capitalization above $1 trillion, making it one of the fastest companies to reach that threshold.
Susquehanna raised its target to $1,750 from $600, while DA Davidson lifted its to $1,500 from $1,000 and Mizuho to $1,150 from $800. The upgrades reflect a structural re-rating of memory stocks as AI infrastructure spending drives demand for high-bandwidth memory and advanced DRAM.
Micron's fiscal second-quarter revenue reached $24 billion, nearly tripling year over year, with adjusted net income surging almost eightfold to $14 billion. The company's Cloud Memory Business Unit nearly doubled to $5.28 billion at 66% gross margins, highlighting the AI-driven demand. Micron's Manassas, Virginia facility recently began producing 1-alpha DRAM, the most advanced memory made in the United States.
The upgrades suggest analysts expect Micron's earnings volatility to moderate as long-term supply agreements lock in pricing and demand visibility. Barclays noted that Micron recently signed its first strategic customer agreement guaranteeing purchases over five years, a shift that could remove the company from the traditional boom-bust memory cycle. Rival SK Hynix also joined the trillion-dollar club this week, as AI-driven memory demand lifted the entire sector.
Investors will watch Micron's fiscal third-quarter earnings report for further disclosure on multi-year customer contracts, which would determine whether the structural re-rating thesis holds. Of 44 analysts covering the stock, 39 rate it a Buy or higher, with four at Hold and one at Sell. The average price target stands at $717.48, according to FactSet data, meaning Raymond James's new target sits well above the consensus.
This article is for informational purposes only and does not constitute investment advice.
[1] Micron Jumps 12% After Price Target Raise From $535 to $1,625: Here’s What’s Driving Wall Street’s Most Bullish Target - AOL[2] DRAM Memory Boom: Why Micron Stock Could Still Double[3] Micron Stock Forecast: Can MU Sustain Its AI-Driven Breakout After Record High?[4] Raymond James Adjusts Price Target on Micron Technology to $1,100 From $1,110, Maintains Outperform Rating - marketscreener.com
