Can HBM Demand Drive Another 60% Rally in Micron?

Micron Technology will report fiscal third-quarter results on June 24. Analysts have highlighted growing demand for high-bandwidth memory (HBM) and tight DRAM and NAND supply, and some price targets have risen as high as $1,700. Investors are assessing whether HBM-related earnings upgrades can keep pace with current market expectations.

HBM is a fast type of memory used by advanced AI processors to move large volumes of data between chips. Cloud providers and AI research labs adding larger server clusters are increasing the amount of memory per system, which raises demand for HBM. Limited capacity across DRAM and NAND markets has supported higher memory prices and strengthened Micron’s earnings outlook.

An investor projects a $1,700 valuation on the view that fiscal 2026 and 2027 earnings estimates may still be low. Krish Sankar of TD Cowen raised his price target to $1,500, citing stronger memory demand and higher memory content in AI servers. Srini Pajjuri of RBC Capital said the DRAM upcycle could continue for five to six quarters, supported by capital spending and HBM demand. Cantor Fitzgerald’s C.J. Muse described the situation as “the memory trade is alive and well.”

Other analysts offered more cautious views. Goldman Sachs increased its Micron price target to $900 but kept a Neutral rating, noting investor expectations are already elevated before the June 24 results and flagging the risk that demand, pricing and margins may not continue to beat forecasts.

Micron has negotiated longer-term customer agreements designed to provide clearer visibility on pricing and demand. Analysts say those contracts can lead to more predictable revenue if customers commit to multi-quarter purchases tied to AI infrastructure deployments.

Risks include the cyclical nature of memory. A slowdown in AI capital spending, faster-than-expected supply additions by memory producers, weaker prices or customer resistance to long-term pricing could compress margins. Past memory upcycles have sometimes ended when capacity additions outpaced demand, and market participants differ on how long current supply tightness will last.

The June 24 earnings release and forward guidance will indicate whether HBM demand remains ahead of supply and whether Micron’s outlook prompts further analyst upgrades. Even a strong quarter could fall short of market expectations if guidance does not support continued HBM-driven growth.