Micron Technology Inc. (NASDAQ: MU) shares advanced 3.3% to $1,054.62 in Wednesday afternoon trading, pushing the company's market capitalization close to $1.20 trillion. The rally came as several Wall Street analysts raised their price targets to as high as $1,500, citing robust demand for high-bandwidth memory (HBM) chips used in artificial intelligence processors.
The stock bounced back after Tuesday's tech selloff, with the iShares Semiconductor ETF (SOXX) gaining 3.3% and Broadcom Inc. (AVGO) adding 5.3%. Nvidia Corp. (NVDA) was flat, down 0.1%. The broader Nasdaq Composite edged lower late morning amid lingering macro uncertainty.
Analyst Upgrades and Price Targets
Since Friday, Deutsche Bank, TD Cowen, and Cantor Fitzgerald have all issued new price targets of $1,500 for Micron, according to Barron's. Deutsche Bank analyst Melissa Weathers raised her estimates, citing "strengthening industry demand dynamics," while maintaining a Buy rating. TD Cowen's Krish Sankar boosted his target from $660 to $1,500, pointing to agentic AI demand strengthening buyer confidence that pricing power could persist into the second half of next year.
RBC Capital Markets' Srini Pajjuri lifted his target to $1,200 from $525, citing "stronger pricing and volume assumptions." The upgrades reflect a growing consensus that Micron has transformed from a cyclical memory supplier into a key AI hardware play, largely thanks to its HBM products.
Earnings Preview
Micron is scheduled to report fiscal third-quarter results on June 24, with a conference call at 2:30 p.m. Mountain time. This earnings date is seen as the next major catalyst after the recent run-up, which has left shares vulnerable to profit-taking.
In March, the company reported fiscal Q2 revenue of $23.9 billion, a 196% year-over-year surge. For the current quarter, Micron guided revenue of $33.5 billion (plus or minus $750 million) and adjusted earnings of $19.15 per share (plus or minus $0.40). CEO Sanjay Mehrotra stated that AI had "fundamentally recast memory as a defining strategic asset." The company warned that tight DRAM and NAND supply constraints persist, affecting both AI and traditional server demand.
Market Context and Risks
Investors are closely watching the Federal Reserve's first policy decision under Chair Kevin Warsh. Jack Ablin, chief investment officer at Cresset Capital Management, told Reuters he expects the Fed to hold rates steady for the remainder of the year. Rising rate forecasts can pressure high-growth stocks by reducing the present value of future earnings.
Micron also flagged memory cycle risks in its latest quarterly filing. The company noted that if HBM demand slows and suppliers shift capacity back to standard DRAM, the market could face oversupply and lower prices. Additionally, the outlook excludes any potential effects from trade or geopolitical issues.
As the June 24 earnings call approaches, all eyes will be on whether Micron can deliver on its ambitious guidance and confirm that AI-driven memory demand remains on an upward trajectory.
