Micron Technology’s Stock Surge Fueled by Dramatic Memory Price Forecasts

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Micron Technology shares have surged past the $400 threshold, setting new record highs as a wave of bullish analyst sentiment and drastically revised price projections for memory chips converge. The rally is primarily attributed to a significant supply-demand imbalance, with research firm TrendForce now forecasting a much steeper increase in DRAM prices than previously anticipated.

A key catalyst for the recent momentum was an analysis released Monday by TrendForce. The market researchers have substantially raised their forecast for DRAM price increases in the current quarter. They now project a jump of 90% to 95% compared to the prior quarter, a sharp upward revision from their earlier estimate of 55% to 60%.

Analysts cite persistently strong demand from the artificial intelligence and data center sectors as the core reason. The imbalance between supply and demand for memory components has intensified considerably. For Micron, a producer of both DRAM and High-Bandwidth Memory (HBM), this pricing power translates directly into higher profit margins.

Wall Street Responds with Higher Price Targets

This optimistic outlook has prompted several financial institutions to raise their valuations for Micron. Phillip Securities initiated coverage on the stock with a Buy recommendation and a price target of $500. Analyst Yik Ban Chong highlighted that Micron's HBM3E chips are now integrated into key AI accelerators, including Nvidia's Blackwell GPU and AMD's MI355 chip.

Mizuho Securities followed suit, lifting its price target from $390 to $480 while maintaining an "Outperform" rating. The firm pointed to heightened revenue expectations for Micron's 2026 fiscal year, driven by customers seeking to secure their memory supply chains amid scarcity.

Key Data Points

• TrendForce Forecast: DRAM prices expected to rise 90-95% this quarter.
• Phillip Securities Target: $500 (Buy rating).
• Mizuho Target: $480, raised from $390.
• Product Integration: HBM3E chips used in Nvidia Blackwell and AMD MI355 systems.

Industry-Wide Shortage Confirmed by Apple

The tight conditions in the memory market recently received confirmation from an unexpected source. During Apple's latest earnings call, CEO Tim Cook acknowledged the company is in "supply chase mode" for memory components. He noted the difficulty in predicting when supply and demand might reach equilibrium.

Further supporting sustained demand are the capital expenditure plans of other technology giants. Both Meta and Microsoft have signaled intentions to significantly increase their capital expenditures in 2026—by approximately 76% and 90%, respectively. This spending is a direct driver of demand for Micron's server memory products.

Micron's equity, trading above $400 since Monday, reached a new all-time high of $437.80. Investors are now watching to see if this level can establish itself as a new foundation of support for the stock.