D.A. Davidson Sets $3,000 Price Target for Micron (MU) on AI Memory Strength

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Micron shares climbed in premarket trading Friday as technology stocks regained momentum across the sector.
D.A. Davidson analyst Gil Luria boosted his price target for Micron to $3,000, up from $2,100, while keeping a Buy recommendation.
The analyst forecasts sustained AI memory demand will bolster Micron’s financial performance for multiple years ahead.
Extended supply contracts may provide greater revenue stability and shield the company from conventional memory market volatility.
A critical December 9 date approaches when buyback restrictions linked to federal chip funding are scheduled to lift.

Micron (MU) shares moved higher in Friday’s early trading as U.S. equity futures rebounded and market participants assessed an updated analyst outlook. Nasdaq futures climbed 0.89%, while S&P 500 futures added 0.44%, signaling a positive start following Thursday’s tech sector retreat.

Micron Technology, Inc., MU

Technology Sector Rebound Lifts Micron Shares

Micron Technology (NASDAQ: MU) participated in a widespread rally among tech equities ahead of Friday’s market open. The memory chipmaker had slipped Thursday amid investor concerns about OpenAI’s reported revenue performance affecting multiple semiconductor companies.

The recent movement capped an unpredictable week for chip stocks. Market watchers continue evaluating whether AI infrastructure demand can maintain elevated memory pricing and current profitability levels. Micron manufactures memory components deployed in data center servers powering sophisticated AI workloads.

Analyst Boosts Micron Valuation Outlook

D.A. Davidson analyst Gil Luria elevated his 12-month price objective for Micron to $3,000 from $2,100 on October 7, keeping his Buy rating intact. In a related development, AMD shares fell despite strong data center demand Thursday, illustrating divergent performance across semiconductor names.

Luria highlighted to CNBC that Micron currently trades around six times projected earnings, a significant discount compared with roughly 40 times or higher multiples for AMD and Intel. His revised target implies approximately 19 times anticipated fiscal 2027 earnings. Reaching that valuation would require investors to accept a higher premium for Micron’s expected profit generation.

Memory Components Gain Strategic Importance in AI Infrastructure

Luria explained that memory chips directly influence processing speed and the ability of AI systems to handle extended computational tasks. The sector continues building out capacity, though Nvidia stock fell during Thursday’s session despite the company revealing new research investment plans.

The analyst anticipates major cloud providers, including Microsoft, Amazon and Google, will execute additional multi-year supply commitments. Luria projects that five-year agreements may ultimately represent more than half of Micron’s product mix, lessening dependence on spot market transactions. These projections reflect analyst modeling rather than announced customer contracts.

Share Repurchase Program May Resume Soon

Luria highlighted December 9 as a significant milestone, when limitations connected to U.S. semiconductor subsidies are set to expire. Micron has indicated plans to deploy surplus capital toward stock buybacks. Concurrently, Amazon faces questions over rising AI investment costs, while continuing to expand its infrastructure footprint.

Micron’s stock performance continues to correlate with customer capital expenditure patterns and memory chip pricing dynamics. Supply constraints have underpinned recent earnings strength, though the semiconductor industry has historically experienced cyclical downturns. Observers will monitor whether planned repurchases materialize and whether the company can sustain its present profitability levels.