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Rising memory prices and disciplined capital spending across the industry should provide tailwinds for Micron , according to Bank of America. Analyst Vivek Arya, who has a buy rating on the stock, raised his price target to $400 from $300. That implies that shares could rise 16% from here. Shares of Micron Technology have climbed nearly 264% over the past 12 months. MU 1Y mountain MU 1Y chart Arya pointed to a continued increase in spot price for dynamic random access memory, or DRAM, as a tailwind for the stock. “The last few weeks, spot/contract pricing for both DRAM and NAND have been exceptionally strong. While we view the near-term pricing trends as potentially abnormal and aggressive, we expect the current strong price outlook to generally continue into 1Q26, before decelerating (still growing a lot) in 2Q26,” he wrote. Still-disciplined capex spend from competitor Samsung could continue to keep supply tight as well. “While SK Hynix and Micron have planned for substantial capex hikes this year, we flag industry clean room space remains limited, with material equipment installation and volume production still likely 2-3 years away,” Arya said. The analyst added that his price objective, at three times Micron’s price-to-book ratio for the 2027 calendar year, is historically expensive. However, an ongoing memory upcycle and earnings expansion justifies this premium. Micron shares are well liked by the Street. Of the 44 analysts who cover the stock, 40 rate the stock a buy or strong buy, according to LSEG. However, the stock may be over its skis, as the average price target signals a 12% pullback.
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