Deutsche Bank lifts Micron target to $1,500; 47% upside

Deutsche Bank raised its price target on Micron Technology to $1,500 from $1,000 and kept a buy rating, a level that implies roughly 47% upside from the recent close. The bank pointed to persistent supply constraints and growing demand from artificial intelligence applications. Micron shares rose 2.4% on Wednesday after a broader technology sell-off the previous day; the stock had closed at a record high on Monday and is up more than 223% year to date.

Deutsche Bank analyst Melissa Weathers wrote that recent management commentary and industry trends support a stronger earnings outlook. “We see strong upward bias to our estimates given management’s intra-quarter commentary around its financial outlook strengthening, continuous strength in memory pricing, and the company’s historical tendency to beat Street revenue estimates,” she wrote in a client note.

Other brokerages have raised targets in recent weeks. TD Cowen and Cantor Fitzgerald set targets at $1,500, while RBC Capital Markets increased its target to $1,200 from $525. Those firms cited expectations that demand from AI infrastructure will lift memory consumption, supporting higher prices and margins.

TD Cowen analyst Krish Sankar noted that memory demand should continue even as some AI suppliers adjust system specifications. He highlighted the growing use of agentic AI and said it will require more central processing units and supporting infrastructure, which increases memory needs. Sankar added that investors want more clarity on multiyear customer agreements that provide visibility into future demand.

RBC analyst Srini Pajjuri emphasized high-bandwidth memory, or HBM, as a distinct product type for next-generation AI systems. Pajjuri expects HBM to make up a larger share of Micron’s revenue as production ramps and to be less exposed to typical cyclical pricing swings. He pointed to limited clean-room capacity in manufacturing as a constraint that will restrict meaningful supply growth until later next year.

Melius Research analyst Ben Reitzes offered a more cautious timeline but projected that unusually high gross margins could persist and noted potential for significant buybacks in 2027.

Investors will focus on Micron’s quarterly report on June 24 for confirmation that AI-driven demand is sustaining elevated margins and for details on long-term customer contracts. Micron disclosed its first five-year strategic customer agreement in March but provided limited information on pricing or profitability protections. Analysts will watch whether hyperscale customers commit to multiyear pricing arrangements and whether any agreements could sustain gross margins above 70%.