Key Takeaways
- DA Davidson launches coverage on Micron with a Buy rating and establishes a Street-leading $1,000 price target, suggesting approximately 91% potential upside
- The optimistic outlook rests on artificial intelligence driving a more sustainable and structurally unique memory cycle compared to historical patterns
- In March, Micron became the first memory manufacturer to secure a five-year supply agreement with a major customer
- TD Cowen increased its price objective to $660 from $550, reaffirming its Buy recommendation
- Micron expanded its HBM market position from approximately 5% in 2024 to roughly 21% in Q2 2025, surpassing Samsung
Micron Technology garnered significant attention from analysts on Monday, as DA Davidson established Wall Street’s most aggressive price target at $1,000 per share.
Gil Luria, analyst at DA Davidson, launched coverage with a Buy recommendation, contending that artificial intelligence is fundamentally transforming the memory sector in ways that current market valuations fail to recognize. His $1,000 price objective suggests potential gains of approximately 91% from Micron’s recent close at $524.56.
The valuation methodology applies a 10x multiple to Micron’s projected fiscal 2030 earnings of $139 per share, then discounts that figure backward three years using a 10% discount rate.
Luria’s central thesis highlights how traditional memory cycles operated under constrained demand dynamics — production capacity would eventually exceed requirements, compressing margins and concluding the cycle. Artificial intelligence fundamentally alters this equation.
“Every new compute infrastructure deployment enables novel applications and use cases, generating additional demand that previously didn’t exist before the capacity was available,” Luria explained.
He further emphasized the emergence of extended strategic supply partnerships as evidence of fundamental industry evolution. Micron disclosed a five-year supply commitment in March, marking the first such arrangement among memory manufacturers. Industry reports suggest Samsung and SK Hynix are pursuing comparable agreements with cloud infrastructure providers.
High-Bandwidth Memory Drives Growth Trajectory
High-bandwidth memory represents the cornerstone of Micron’s expansion narrative. The chipmaker increased its HBM market presence from roughly 5% throughout 2024 to approximately 21% by the second quarter of 2025, surpassing Samsung to claim the number-two position among HBM suppliers.
Luria additionally highlighted Micron’s process technology leadership — maintaining a four-generation advantage in DRAM and three-generation lead in NAND — as creating a cumulative cost benefit that markets may be underappreciating.
“Market participants continue evaluating this cycle through the framework of previous downturns, which seems to significantly underestimate the current demand landscape,” he stated.
TD Cowen Elevates Price Objective
TD Cowen lifted its Micron price target to $660 from $550, maintaining its Buy stance. The investment firm indicated that emerging long-term supply contracts are being negotiated with gross margin parameters establishing floors near 60% and upper boundaries in the high-80% range.
TD Cowen suggested the next significant catalyst for shares relates more to demonstrating sustainability than exceeding near-term earnings expectations, with artificial general intelligence-driven CPU requirements potentially extending the DRAM growth story over the long term.
The firm anticipates Micron’s earnings per share will exceed consensus forecasts by roughly 20% in the May quarter — projecting $23 compared to the $19 consensus estimate — and by 18% in the August quarter at $27 versus $23.
TD Cowen’s calendar 2027 EPS projection stands at $110, modestly above the Street consensus of $106.
The firm acknowledged potential near-term challenges in the second half, observing that transitions from elevated to lower gross margin levels have historically created pressure on the stock.
Micron’s trailing twelve-month gross profit margin registers at 58.44%, with shares currently trading at a price-to-earnings ratio of 23.42.
Melius Research separately launched coverage with a Buy rating and $700 price target, projecting 41% upside potential.
Micron shares traded at $495 on Monday, declining approximately 5.6% during the session.
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