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Micron (MU) Shares Get Bullish Target Hike as DRAM Prices Accelerate

Micron Technology, Inc. (NASDAQ:MU) is one of the AI Stocks Making Waves on Wall Street. On January 2, Bernstein SocGen Group analyst Mark Li raised the price target on the stock to $330.00 (from $270.00) while maintaining an “Outperform” rating. Analysts view sustained pricing strength for MU through 2026 driven by a structural supply lag and accelerating AI demand.

The DRAM and flash memory producer surged on Friday after Bernstein raised its price target on the stock, implying how there is still considerable interest in working memory essential for AI. While analysts did acknowledge how MU’s report implies an upside risk to 2026 forecast, they believe that prices will normalize in 2027.

“We expect DRAM prices to continue rising from the start of 2026, as AI makes data center demand balloon but supply expansion takes time.”

Firm analysts anticipate a 20-25% quarter-over-quarter DRAM ASP growth backed by rising conventional DRAM prices. However, recent data suggests an upside risk, they noted.

“For example Micron’s FQ2 guidance suggests even stronger price increase in the near term (see earnings takeaway). And we believe price will very likely continue rising past 1Q26, as capacity addition takes time and likely is constrained by cleanroom space as well.”

Analysts further added how Micron’s revision for FY26 capex involved a modest increase, likely due to lack of space available. This is why it models Q0Q ASP increase to continue throughout 2026.

Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.

While we acknowledge the risk and potential of MU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MU and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 AI Stocks Investors Are Watching and 10 Best AI Stocks to Buy Under $50

Disclosure: None.

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