Micron rises after KeyBanc lifts price target on tight supply

Micron Technology shares rose more than 4% on Tuesday after KeyBanc raised its price target to $1,750 from $1,600 following a supply-chain visit to Asia. The stock jumped about 4.6% to $980.34 in early trading after a 4.3% decline on Monday. KeyBanc’s new target implies roughly 87% upside from Monday’s close of $937 and is based on a price-to-earnings multiple of nine times the firm’s projected fiscal 2027 earnings for Micron.

In a research note, KeyBanc analyst John Vinh wrote, “Memory shortages remain persistent…Supply chain commentary continues to point to a tight memory environment through 2027.”

KeyBanc’s supply checks predict DRAM prices will rise 15% to 20% in the third quarter versus the prior quarter, followed by a further 15% gain in the fourth quarter. For NAND flash memory, the firm projects a 30% to 40% increase in the third quarter and another 15% in the fourth quarter. The analyst also projects more than a doubling in prices for high-bandwidth memory next year.

Micron has been a major supplier to artificial intelligence infrastructure, where high-bandwidth memory is used with advanced AI processors. On the company’s most recent earnings call, Chief Executive Sanjay Mehrotra stated demand for DRAM and NAND continues to outpace supply and that the company expects tight conditions beyond calendar 2027.

The company has signed 16 long-term supply agreements with major customers, which Micron says provides greater revenue visibility and helps production planning. The firm also reported continued demand for data-center DRAM products and enterprise solid-state drives.

Analyst coverage remains positive. In July, 89% of 45 analysts issuing ratings recommended buying or strongly buying the stock, and FactSet data shows an average Wall Street price target near $1,579.

Micron shares still trade below last year’s high, about 21% under a 52-week peak of $1,255. The stock’s forward 12-month price-to-earnings multiple is about 6.58, down from a one-year high of 17.01.