Key Highlights
- Shares of Micron climbed 3.5% to $1,005.65 during premarket hours, marking the fifth consecutive session of gains
- Howard Lutnick, Commerce Secretary, stated the administration is pushing U.S. firms away from Chinese memory chip suppliers
- The administration directly reached out to Apple concerning its discussions with Chinese memory maker CXMT
- New Street Research lifted its rating to Buy with a $1,250 target; UBS analysts established a bullish $1,625 price objective
- Analyst consensus stands at Strong Buy with an average target of $1,569.07, suggesting potential gains exceeding 61%
Shares of Micron advanced 3.5% to reach $1,005.65 during Monday’s premarket session, buoyed by favorable policy developments from Washington and upgraded analyst ratings.
The rally followed statements from Commerce Secretary Howard Lutnick, who informed The Wall Street Journal that the administration is pushing American businesses away from Chinese memory chip manufacturers. “It’s not great American companies using Chinese memory,” Lutnick stated.
In a more direct intervention, the White House contacted Apple regarding preliminary conversations with ChangXin Memory Technologies (CXMT), a Chinese memory producer. Apple was reportedly exploring potential component sourcing from CXMT for products destined for the Chinese market.
CXMT recently went public in China and has rapidly advanced in standard DRAM technology, securing 7% of worldwide market revenue during Q2, per Counterpoint Research data. Nevertheless, U.S. regulations mandate that American corporations secure licensing approval before exchanging technical specifications with the Chinese company.
South Korea’s SK Hynix benefited from the news as well, with its ADRs climbing 4.2% during early market activity.
Analysts Boost Outlook on Micron Stock
Pierre Ferragu from New Street Research elevated Micron to a Buy rating while establishing a $1,250 price objective. His upgrade from Neutral reflects robust financial performance, constrained memory availability, and indications that the memory sector may be transitioning to sustained expansion rather than cyclical volatility.
Timothy Arcuri at UBS takes an even more bullish stance with a $1,625 target. His financial model forecasts earnings per share of $74.13 for 2026, jumping to $184.89 in 2027 and $265.65 by 2028. Arcuri anticipates EPS maintaining levels above $160 through 2029.
Over the trailing twelve months, Micron shares have skyrocketed nearly 700%, although they continue trading below the peak levels exceeding $1,200 reached during the summer months.
Memory Chip Pricing Trends Upward
KeyBanc analysts forecast DRAM pricing will increase 15% to 20% during Q3, followed by an additional 15% gain in Q4. NAND pricing could surge 30% to 40% in Q3. Artificial intelligence data center investments represent the primary catalyst, driving heightened demand against constrained supply conditions.
The company recently announced a $250 million investment fund dedicated to AI startups, reinforcing its strategic commitment to the artificial intelligence sector.
Throughout Wall Street, Micron holds a Strong Buy consensus rating based on 29 Buy recommendations and a single Hold rating issued within the last three months. The mean price target stands at $1,569.07, implying potential appreciation exceeding 61% from present trading levels.
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