Rosenblatt raises Micron Technology stock price target to $300 on AI demand

Rosenblatt has significantly raised its price target for Micron Technology (MU) to $300 from $250, maintaining a Buy rating, driven by expectations of limited DRAM supply growth through 2026 and accelerating demand from AI accelerators and edge devices, which is also pushing DRAM and NAND prices higher than anticipated. This bullish outlook, supported by Micron's strong year-to-date performance and new product launches for AI, aligns with broader industry optimism, though potential competition from Samsung's reported HBM price cuts introduces a notable market dynamic.

Analysis

Rosenblatt has significantly raised its price target for Micron Technology (MU) to $300 from $250, while maintaining a Buy rating, notably above the current trading price of $246.83. This upgrade follows Micron's impressive 194.13% year-to-date return, with the stock trading near its 52-week high, reflecting strong market momentum and analyst confidence.

The bullish outlook is primarily driven by expectations of limited DRAM supply growth through 2026, coinciding with accelerating demand from AI accelerators requiring High Bandwidth Memory (HBM) and AI models deployed at the network edge. This supply-demand imbalance is leading to faster-than-estimated price increases for both DRAM and NAND, contributing to Micron's strong 48.85% revenue growth over the last twelve months, reaching $37.38 billion.

Micron is actively innovating, evidenced by shipping qualification samples of automotive UFS 4.1 for AI workloads and sampling 192GB SOCAMM2 modules for AI data centers, showcasing product leadership. While the broader memory market is experiencing an upcycle, as indicated by SK Hynix's strong report and Mizuho's Outperform rating on MU, potential competition from Samsung's reported 30% HBM price cuts introduces a key market dynamic to monitor.

Key Decisions for Investors

• Investors should consider the sustained bullish outlook for Micron, driven by favorable DRAM supply-demand dynamics and strong product innovation in AI-related memory solutions.
• Monitor the competitive landscape, particularly the impact of Samsung's reported HBM price cuts, which could influence market share and pricing power in the high-end memory segment.
• Evaluate the long-term sustainability of AI-driven memory demand and Micron's execution in capturing market share in next-generation automotive and data center AI applications.