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Micron (NASDAQ: MU) inventory continues to outperform Monday after its massive Friday bounceback.
Final week, Mizuho raised its worth goal on Micron inventory, citing tight DRAM laptop reminiscence provides that might push gross revenue margins greater. This morning, a number of extra analysts chimed in with phrases of help for the purchase thesis.
Micron is because of report fiscal Q1 2026 earnings on Dec. 17. Final week, Mizuho mentioned DRAM costs are spiking, and demand for NAND high-bandwidth reminiscence (HBM) is on the rise, as synthetic intelligence corporations purchase closely to help their AI performance. Mizuho could have been among the many first to notice this pattern, however it is not the one one.
This morning, UBS analyst Timothy Arcuri reiterated his purchase ranking and $275 worth goal on Micron inventory, predicting an earnings beat as “tightening provide” of DRAM costs results in “DDR gross margin surpassing HBM for the primary time in early C2026.”
Susquehanna Financial institution and Bernstein SocGen raised their worth targets to $270 and $300 a share, respectively. And Financial institution of America analyst Vivek Arya thinks this may very well be greater than only a one-beat story. Arya says “the present AI upcycle may very well be extra structural in nature and sustainable.” (BofA values Micron inventory at $250, although).
Of explicit word, BofA’s Arya factors out that AI features require far more reminiscence to be implanted in servers than standard — as a lot as two occasions extra reminiscence generally, and thrice extra DRAM (and DRAM is Micron’s specialty).
The analyst argues this might result in “even larger (>3x) … whole gross revenue” for Micron per server loaded with its DRAM. If that is true, even analyst forecasts for 29% long-term earnings development at Micron may grow to be conservative.
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