Key Takeaways
- MU shares climbed 1.2% to $961.51 during early Friday sessions, extending its monthly advance to 12%.
- According to KeyBanc, DRAM prices are projected to increase 15%-20% in Q3, while NAND flash memory could surge 30%-40%.
- New Street Research raised its rating on MU to buy with a $1,250 target, arguing the memory sector has undergone a fundamental transformation beyond traditional boom-bust patterns.
- By 2030, New Street anticipates Micron could accumulate more than $600 billion in cash reserves while producing $150 billion in yearly free cash flow.
- UBS analyst Timothy Arcuri established a $1,625 price objective, while the consensus Wall Street target stands at $1,549.
Shares of Micron Technology climbed to $961.51 Friday morning, posting a 1.2% increase as Wall Street analysts delivered optimistic forecasts and memory chip pricing showed continued strength.
This latest advance builds upon a robust 12% monthly surge, although shares still trade beneath their late June high of over $1,200. Year-to-date, the semiconductor manufacturer has more than tripled in market value.
Momentum accelerated following Sandisk’s positive long-term outlook released earlier this week, reigniting investor enthusiasm across the memory sector. SK Hynix ADRs similarly jumped 1.4% during premarket hours.
KeyBanc provided concrete projections supporting the bullish sentiment. The investment firm anticipates DRAM pricing will advance 15% to 20% quarter-over-quarter in Q3, with an additional 15% increase expected in Q4. Meanwhile, NAND flash memory prices could soar 30% to 40% in Q3, followed by another 15% rise in Q4.
New Street Raises Rating to Buy
Friday morning saw New Street Research elevate Micron to a buy rating, establishing a $1,250 price objective. The firm’s thesis centers on the notion that the current memory cycle represents a fundamental departure from historical patterns.
New Street highlighted that Micron’s equity value has multiplied more than tenfold since April 2025 lows, even as production value measured through cost of goods sold increased merely 25%. This divergence, according to the firm, signals a structural transformation rather than a conventional cyclical upswing.
The upgrade represents the culmination of a research initiative New Street launched in July examining whether the memory industry has experienced fundamental changes.
New Street’s projections envision Micron holding over $600 billion in cash by 2030 while generating more than $150 billion in annual free cash flowāfigures the firm characterizes as peak performance.
Artificial Intelligence Fueling Growth Projections
Even accounting for a projected downturn post-2030, New Street models a significantly gentler decline compared to historical cycles, with only $18 billion in free cash flow burn at the low point and over $100 billion produced annually throughout a four-year downturn period.
The research firm forecasts memory demand expanding at a 15% annual rate beyond 2030, outpacing the 10% historical average recorded over the previous two decades. Artificial intelligence applications are expected to represent two-thirds of total demand.
Regarding valuation metrics, New Street argued that high-bandwidth memory commands a premium valuation compared to conventional commodity DRAM due to reduced cyclicality. This framework, the firm stated, supports a $2 trillion to $3 trillion market capitalization for Micron by decade’s end.
UBS analyst Timothy Arcuri unveiled a $1,625 price objective this week, calculated at 11 times his 2029 earnings forecast for Micron. Arcuri acknowledged the target incorporates expectations for a moderate memory industry downcycle by that timeframe.
Currently, the stock trades at a forward price-to-earnings multiple of 6.3 times, positioned below the majority of semiconductor industry peers. According to FactSet data, the Wall Street consensus price target for Micron sits at $1,549.
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