Key Takeaways:
Micron Technology shares surged 10.8% to a record after two analysts raised price targets, citing AI-driven memory demand that is outstripping supply.
"Demand for memory used in AI systems is still running ahead of supply, and that could keep prices stronger for longer," Krish Sankar, analyst at TD Cowen, said.
Sankar raised his price target to $1,500 from $660, keeping a Buy rating. He expects Micron to earn about $23 per share in the fiscal third quarter, above the $20 consensus, and $27 per share in the August quarter. RBC Capital Markets' Srini Pajjuri increased his target to $1,200 from $525, also maintaining a Buy rating.
The upgrades come ahead of Micron's June 24 earnings report, where investors will watch for updates on pricing, AI server demand and long-term customer agreements. Shares closed at $1,087.99, giving the Boise, Idaho-based company a market value of about $120 billion.
The Philadelphia semiconductor index rose 5.5% to cross 14,000 for the first time, with 10 of its 30 components hitting all-time highs. Advanced Micro Devices gained 7% and Nvidia also advanced, as the U.S.-Iran peace deal boosted risk appetite across technology stocks.
Micron has rallied 244% year to date, making it one of the best performers in the semiconductor sector. The company reported fiscal second-quarter revenue of $23.86 billion, up 196% from a year earlier, with gross margin expanding to 74%. It guided fiscal third-quarter revenue to $33.5 billion at the midpoint.
The analyst upgrades signal that Wall Street expects the memory cycle to extend further as AI data center buildout drives demand for high-bandwidth memory. Investors will focus on Micron's forward guidance and any updates on long-term supply agreements when it reports on June 24.
This article is for informational purposes only and does not constitute investment advice.
