Barclays Raises Micron, SanDisk Targets on AI Memory Demand

Barclays raised price targets for Micron Technology and SanDisk, boosting Micron to $1,175 and SanDisk to $2,300 while maintaining Overweight ratings on both. The bank cited rising AI-driven demand for DRAM and NAND and a shift toward multi-year customer agreements that increase revenue visibility.

Analyst Tom O’Malley has increased Micron’s target several times this year: $275 in December, $450 in January, $675 in March and $1,175 in the latest update. Barclays pointed to Micron’s five-year Strategic Customer Agreement and the wider move from short-term contracts to multi-year volume deals as factors that reduce revenue volatility in a typically cyclical industry.

Micron reported fiscal second-quarter revenue of $23.9 billion and non-GAAP earnings of $12.20 per share, versus $8.1 billion in revenue and $1.56 per share a year earlier. The company guided fiscal third-quarter revenue of about $33.5 billion and non-GAAP EPS of $19.15, figures Barclays cited when raising its target.

Barclays raised its SanDisk target to $2,300 from $1,200 and upgraded the stock to Overweight. The bank said SanDisk’s more aggressive contracting approach and stronger revenue visibility align with growing demand from data centers for high-speed storage.

Analysts point to AI data centers as the primary driver of higher memory consumption. Graphics processors require high-bandwidth DRAM and faster NAND storage to run large models, which raises the amount of memory and storage per system.

Industry forecasts project significant price gains and market growth. Gartner estimates DRAM prices could rise about 125% in 2026 and NAND flash prices about 234% in 2026, and projects global semiconductor revenue above $1.3 trillion this year. TrendForce expects the global memory market to reach $551.6 billion in 2026 and $842.7 billion in 2027.

Supply constraints could limit how quickly capacity expands. SK Group Chairman Chey Tae-won warned wafer shortages could persist through 2030 because high-bandwidth memory production uses large wafer capacity and new fabs take years to ramp. UBS raised its Micron target to $1,625 from $535 this week, citing AI demand and long-term supply agreements.

Market moves have been large: Micron shares have risen about 832% over the past year and trade near $895, while SanDisk shares have jumped more than 4,000% and trade near $1,590. Market data indicate both stocks appear above traditional fair-value metrics.