Server DDR5 Is A Promising Opportunity For Micron Technology, Inc. (MU), Says Stifel

Micron Technology, Inc. (NASDAQ:MU) is among the 10 Best Performing S&P 500 Stocks in the Last 2 Years.

On March 2, Stifel elevated the price target on Micron Technology, Inc. (NASDAQ:MU) to $550 from $360 and maintained a Buy rating. This upward revision in target was driven by memory prices hitting high levels unexpectedly, reflecting a growing supply-demand imbalance. The firm views server DDR5 as a promising opportunity alongside high-bandwidth memory, which it believes will accelerate server RDIMM gross margins by over 80%.

According to Stifel, consumer memory pricing has surged in recent months, doubling to more than $1 per gigabyte. With that said, the firm now projects blended gross margins to reach software-like levels by mid-year, in the mid-to-upper 70% range, sustaining through the end of this year. Moreover, the firm views the consensus estimate as too low.

UBS analyst Timothy Arcuri says that industry checks signal favorable pricing trends across both core DRAM and NAND, with shortages existing through the latter half of next year and into 2028, mainly for DRAM. The firm lifted its price target on Micron Technology, Inc. (NASDAQ:MU) from $450 to $475 and reaffirmed a Buy rating on March 2.

Micron Technology, Inc. (NASDAQ:MU) is an Idaho-based company specializing in memory and storage products. Incorporated in 1978, the company operates through four segments, including the Cloud Memory Business Unit and Core Data Center Business Unit.

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