Key Highlights
- DA Davidson assigns Micron a Buy rating with a $1,000 price target, representing the highest forecast on Wall Street and suggesting ~91% potential gain
- The optimistic outlook focuses on AI generating a more sustainable, fundamentally transformed memory cycle compared to historical patterns
- In March, Micron secured a five-year supply agreement — an unprecedented move among memory manufacturers
- TD Cowen increased its price target to $660 from $550, reiterating its Buy recommendation
- Micron’s HBM market position expanded from approximately 5% in 2024 to roughly 21% by Q2 2025, surpassing Samsung
Micron Technology garnered attention from two optimistic analyst updates on Monday, with DA Davidson establishing the most aggressive price target on Wall Street at $1,000 per share.
DA Davidson analyst Gil Luria launched coverage with a Buy recommendation, contending that artificial intelligence is reshaping the memory sector in ways that current market valuations fail to capture. His $1,000 forecast represents approximately 91% potential appreciation from Micron’s latest closing price of $524.56.
The valuation derives from applying a 10x multiple to Micron’s fiscal year 2030 earnings projection of $139 per share, with a three-year discount rate of 10%.
Luria’s central thesis highlights that previous memory cycles operated under a fixed demand cap — production capacity would eventually exceed requirements, profit margins would contract, and the cycle would conclude. Artificial intelligence disrupts this conventional pattern.
“Each new compute deployment unlocks new use cases, creating incremental demand that didn’t exist before the infrastructure was built,” Luria wrote.
He additionally emphasized the emergence of multi-year strategic supply partnerships as evidence of fundamental industry transformation. Micron revealed a five-year supply contract in March, marking the first such arrangement among memory producers. Samsung and SK Hynix are reportedly pursuing comparable agreements with hyperscale customers.
HBM Drives Core Growth Narrative
High-bandwidth memory stands at the heart of Micron’s expansion trajectory. The company expanded its HBM market presence from roughly 5% in 2024 to about 21% by Q2 2025, surpassing Samsung to claim the position of second-largest HBM provider.
Luria highlighted Micron’s technological advancement — maintaining four consecutive generation leads in DRAM and three in NAND — as a multiplying cost benefit that market participants may be overlooking.
“The market is still framing the cycle through the lens of prior downturns, which appears to underestimate the demand environment,” he said.
TD Cowen Elevates Price Forecast
TD Cowen lifted its Micron price objective to $660 from $550, maintaining its Buy stance. The firm indicated that long-term supply contracts are being negotiated with gross margin parameters establishing floors near 60% and ceilings approaching the high-80s percentage range.
TD Cowen observed the upcoming catalyst for shares centers on sustainability rather than earnings surprises, with AGI-powered CPU requirements potentially extending the DRAM growth story over the longer horizon.
The firm anticipates Micron’s earnings per share will exceed consensus forecasts by approximately 20% in the May quarter — estimating $23 compared to the $19 consensus — and by 18% in the August quarter at $27 versus $23.
TD Cowen’s calendar year 2027 EPS projection stands at $110, marginally above the Street consensus of $106.
The firm acknowledged potential challenges in the latter half of the year, observing that shifts from elevated to lower gross margins have historically created pressure on share performance.
Micron’s current gross profit margin registers at 58.44% over the trailing twelve months, with shares trading at a P/E ratio of 23.42.
Melius Research recently launched coverage with a Buy rating and a $700 price objective, projecting 41% upside potential.
Micron shares traded at $495 on Monday, declining approximately 5.6% during the session.
