Quick Summary
- Micron shares advanced 3.5% in premarket activity to $1,005.65, marking its fifth consecutive session of gains
- Commerce Secretary Howard Lutnick stated the administration is pushing U.S. businesses away from Chinese-made memory semiconductors
- The White House directly reached out to Apple concerning its discussions with Chinese memory manufacturer CXMT
- New Street Research elevated MU to Buy status with a $1,250 target; UBS established an ambitious $1,625 forecast
- Analyst consensus stands at Strong Buy with a mean target of $1,569.07, suggesting potential gains exceeding 61%
Shares of Micron surged 3.5% to $1,005.65 during Monday’s premarket session, buoyed by favorable government policy developments and a series of optimistic analyst revisions.
The rally followed statements from Commerce Secretary Howard Lutnick, who informed The Wall Street Journal that the Trump administration is pushing U.S. businesses to avoid purchasing memory semiconductors from Chinese manufacturers. “It’s not great American companies using Chinese memory,” Lutnick stated.
In a more targeted action, the administration reached out directly to Apple regarding preliminary negotiations the tech giant had initiated with ChangXin Memory Technologies (CXMT), a Chinese memory producer. Reports indicate Apple had explored the possibility of CXMT supplying components for select products destined for the Chinese market.
CXMT recently went public in China and has demonstrated rapid advancement in traditional DRAM technology, securing 7% of worldwide market revenue during the second quarter, based on data from Counterpoint Research. Nevertheless, U.S. regulations mandate that American corporations secure proper licensing before exchanging product specifications with the Chinese company.
South Korea’s SK Hynix also benefited from the news, with its American depositary receipts climbing 4.2% during early market hours.
Analyst Community Increases Confidence in Micron
Pierre Ferragu from New Street Research elevated his rating on Micron to Buy and established a $1,250 price objective. His upgrade from Neutral reflects impressive financial performance, constrained memory availability, and indications that the memory sector may be transitioning into an extended growth phase instead of following its traditional cyclical patterns.
Timothy Arcuri at UBS presents an even more bullish outlook, positioning his target at $1,625. His projections forecast earnings per share of $74.13 for 2026, climbing to $184.89 in 2027 and reaching $265.65 by 2028. Arcuri anticipates EPS will maintain levels above $160 through 2029.
Micron shares have skyrocketed approximately 700% during the previous 12 months, although the stock continues trading beneath its summer peak of over $1,200.
Memory Market Sees Upward Price Momentum
Analysts at KeyBanc anticipate DRAM pricing will increase between 15% and 20% during the third quarter, followed by an additional 15% rise in Q4. NAND pricing could experience even steeper gains of 30% to 40% in the third quarter. Accelerating AI data center investments represent the primary catalyst, driving demand upward while manufacturing capacity remains constrained.
The semiconductor company recently unveiled a $250 million investment fund dedicated to artificial intelligence startups, further reinforcing its commitment to the expanding AI ecosystem.
The Street’s consensus on MU reflects Strong Buy sentiment, backed by 29 Buy recommendations and a single Hold rating issued over the last three months. The mean analyst price target stands at $1,569.07, implying potential appreciation of more than 61% from present trading levels.
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