Memory Maker Gains Despite Mixed Signals
Micron Technology shares advanced 3.1% on Friday, closing at $394.69 after trading between $372.87 and $396.65 during the session. The move higher came as U.S. markets concluded weekly trading, setting the stage for renewed focus on the memory sector's role in artificial intelligence infrastructure.
Analyst Actions Highlight Diverging Views
UBS increased its price target for Micron to $450 from $400, maintaining a Buy rating. The firm cited expectations for a 62% rise in DDR memory contract prices and a 40% increase in NAND flash pricing during early 2026, with supply constraints potentially extending into 2027.
In contrast, research firm Semianalysis reduced its forecast for Micron's portion of Nvidia's next-generation HBM4 supply to zero, citing performance concerns related to base-die design and speed. The firm now anticipates SK Hynix will capture approximately 70% of Nvidia's HBM4 orders, with Samsung securing the remaining 30%.
AI Investment Boom Drives Memory Demand
The memory sector has become increasingly critical as technology giants accelerate AI spending. Amazon, Alphabet, Microsoft, and META are projected to deploy over $630 billion in AI investments this year, creating substantial demand for high-performance memory components.
High-bandwidth memory represents a premium product category with stronger margins, making supplier selection for next-generation AI chips particularly consequential for long-term revenue streams.
Market Context and Upcoming Catalyst
While Micron has benefited from positive memory pricing trends, some investors question how much AI optimism is already reflected in the stock's valuation. The company's cyclical earnings could face pressure if memory price increases stall or customers resist higher costs.
Investors will monitor Micron's scheduled appearance at Wolfe Research's Auto, Auto Tech and Semiconductor Conference on February 11 for updates on HBM production progress, customer qualification status, and potential new developments regarding HBM4 supply arrangements.
