TLDR
- Shares currently trade 15% below the February 2 record closing price of $437.80
- Citi upgraded its price objective to $430 from $385 while reaffirming its Buy recommendation before the March 18 report
- Susquehanna increased its target to $525 from $345 and maintained its Positive stance
- Analysts at Citi project DRAM pricing will surge 171% year-over-year in 2026 driven by data center growth
- Reports indicate SK Hynix and Samsung secured exclusive HBM4 supply agreements for Nvidia’s upcoming Vera Rubin accelerator, leaving Micron out initially
Shares of Micron advanced modestly on Monday, climbing 0.5% to close at $372.29, as market participants digested positive analyst revisions alongside reports suggesting Korean competitors secured an important Nvidia supply agreement.
The semiconductor manufacturer has experienced recent volatility. Following a 6.7% decline on Friday and an additional 0.9% drop the previous session, shares now sit 15% beneath the record closing high of $437.80 reached on February 2.
Market attention now turns to the company’s fiscal second-quarter financial results scheduled for release on March 18.
On Monday, two prominent Wall Street firms announced upward revisions to their price objectives. Citi analysts maintained their Buy recommendation while increasing their target to $430 from the previous $385. Susquehanna analysts made an even more substantial adjustment, raising their target to $525 from $345 while keeping their Positive rating intact.
Citi’s Atif Malik highlighted accelerating memory pricing as the primary catalyst for optimism. His analysis now anticipates DRAM average selling prices will jump 171% year-over-year in 2026, powered by robust data center requirements. NAND flash prices are similarly expected to climb 127% year-over-year driven by strong enterprise SSD adoption.
“Our supply chain discussions and analysis point to majority of the 2026 hyperscale capex revision to be driven by higher memory costs,” Malik wrote in his note.
Malik also referenced reports indicating Samsung is implementing a 100% quarter-over-quarter DRAM price increase during the current quarter.
The Citi research team acknowledged ongoing investor discussions about whether the present memory market expansion mirrors the prolonged growth cycle experienced during the 1990s Windows PC revolution. Their assessment suggests Micron stock can sustain its momentum throughout 2026, though they cautioned that relative outperformance may moderate in the second quarter following substantial first-quarter appreciation.
SK Hynix and Samsung Grab Nvidia HBM4 Deal
South Korean media outlets reported over the weekend that SK Hynix and Samsung Electronics have been designated as exclusive HBM4 memory providers for Nvidia’s forthcoming Vera Rubin accelerator platform. Barron’s indicated it had contacted all three companies seeking official confirmation.
The development initially sparked questions regarding Micron’s competitive standing within the high-bandwidth memory segment.
However, independent technology analyst Richard Windsor from Radio Free Mobile offered a contrarian perspective. Windsor anticipates Micron will join the supplier roster later in 2026 as production volumes scale up.
“Furthermore, I do not expect that Micron will suffer a loss of revenues, as everyone is fully booked out for 2026,” Windsor wrote. He emphasized that any manufacturing capacity initially allocated for Nvidia would simply be redirected to alternative customers.
What to Watch at Earnings
Susquehanna’s Mehdi Hosseini projects that memory market supply and demand dynamics could reach equilibrium around the middle of 2027 as new manufacturing facilities become operational.
He suggested that increasingly complex artificial intelligence workloads may sustain elevated memory demand even as profit margins begin compressing at that juncture.
Examining historical memory demand cycles dating back to the 1990s, Citi researchers observed that Micron shares have typically reached peak valuations two to four months ahead of DRAM price peaks. Given projections for continued DRAM price appreciation through 2026, Citi believes additional upside potential remains.
The company will announce its fiscal second-quarter financial performance on March 18.
Remember: Preserve all tokens like [[EMBED_0]], [[IMG_0]], [[LINK_START_0]], [[LINK_END_0]], [[SCRIPT_0]], [[FIGURE_0]] etc. exactly as they appear. These are placeholders for embeds, images, and links that must not be changed.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
