DA Davidson Maintains Buy on Micron Technology, Raises Price Target to $3000
DA Davidson analyst Gil Luria maintains Micron Technology (NASDAQ:MU) with a Buy and raises the price target from $2100 to $3000.
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Micron stock climbs as robust AI memory demand, tight NAND supply and bullish analyst coverage lift sentiment ahead of Sept. 30 earnings.
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DA Davidson analyst Gil Luria maintains Micron Technology (NASDAQ:MU) with a Buy and raises the price target from $2100 to $3000.
Memory stocks are experiencing significant gains due to unprecedented AI-driven demand for memory chips. CEOs from Apple, Tesla, and Sony have highlighted severe memory supply shortages affecting their businesses and pricing. Major memory makers like Micron, Samsung, and SK Hynix are benefiting from this supercycle, with Micron securing long-term strategic agreements covering 35% of production through 2030.
Micron Technology has surged 270% this year driven by strong AI demand for memory and storage, with fiscal Q4 revenue up over 300% to $54 billion and gross margins at 86%. The bull case highlights early-stage AI adoption, strategic customer agreements through 2031, and continued growth potential. The bear case warns of cyclical memory pricing pressures as supply doubles by 2028, potential AI spending slowdowns, and risks of a pullback despite attractive 6x forward earnings valuation.
Both Sandisk and Micron have surged in 2026 due to AI data center memory demand, with Sandisk up 613% and Micron up 272%. However, Sandisk's gains are heavily driven by pricing rather than volume, raising concerns about sustainability. Micron appears better positioned with diversified memory products (NAND and DRAM), a custom high-bandwidth memory partnership with Nvidia, and stronger long-term growth potential.
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