Micron Technology closed Friday's session with a 3% advance, finishing at $394.69. Trading volume was elevated at 37.2 million shares as the stock moved between $371.27 and $401.50 during the day.
UBS analyst Timothy Arcuri increased his price target for Micron to $450 from $400, maintaining a Buy rating. The revision is based on channel checks indicating memory supply constraints could extend deeper into 2027, with DRAM shortages potentially lasting through the end of that year and NAND tightness persisting into early 2027.
Contrasting this bullish outlook, research firm Semianalysis projects Micron will secure no portion of Nvidia's upcoming high-bandwidth memory (HBM4) orders. The analysis anticipates supply will be divided between rivals SK Hynix and Samsung. HBM is a critical, high-margin component stacked adjacent to AI processors to accelerate data transfer.
The semiconductor sector rallied broadly on Friday. Nvidia surged nearly 8%, while the iShares Semiconductor ETF and the VanEck Semiconductor ETF both climbed approximately 5%, outperforming the Nasdaq-100.
Micron's stock has become a key indicator for AI infrastructure investment. The company is caught between two narratives: rising demand from hyperscaler spending and competitive battles for high-margin memory contracts. Investors are weighing whether massive capital expenditures, like Amazon's planned $200 billion outlay this year, will ultimately generate sufficient returns.
Looking ahead, traders are monitoring whether semiconductor stocks can sustain Friday's momentum. Key factors include memory pricing trends, lead times, and hyperscaler purchase orders. Broader economic data, including the upcoming U.S. jobs report and January CPI figures, could also influence rate expectations and demand for chip stocks. Micron's next quarterly earnings are scheduled for around March 19.
