Key Takeaways:
Bernstein raised its price target on Micron Technology to $1,300 from $510, more than doubling its previous estimate as AI memory demand surges.
"Micron's position as a key supplier of high-bandwidth memory for Nvidia's AI platforms justifies a higher valuation," the Bernstein analysts wrote in a note.
The new target implies about 15 percent upside from Micron's last close of $1,133.99. The upgrade follows Micron's inclusion in Nvidia's HBM4 supply chain, with the company's manufacturing capacity running at full allocation.
The $790 increase — from $510 to $1,300 — represents one of the largest single-target upgrades on a major semiconductor stock this year. Bernstein's previous target of $510 was set before the current AI infrastructure buildout accelerated demand for HBM memory.
The dramatic revision places Bernstein among the most bullish on Wall Street, where the stock carries 35 buy-equivalent ratings and four hold ratings, with zero sell recommendations, according to MarketBeat. Micron reports quarterly earnings on June 24.
Micron has gained more than 50 percent since the start of the year, surpassing the $1,000 level as hyperscale cloud operators and AI infrastructure builders absorb production output immediately upon availability. The company has expanded its capital expenditure commitments in response to the demand.
Institutional ownership exceeds 75 percent of the float, with BlackRock holding 103 million shares and Goldman Sachs increasing its stake by 56 percent, according to recent filings.
The target raise signals that Bernstein expects the current memory cycle to prove more durable than historical patterns, driven by structural AI demand rather than temporary purchasing. Investors will watch Micron's June 24 earnings report for updated guidance on HBM margins and capacity expansion.
This article is for informational purposes only and does not constitute investment advice.
