Baird Raises Micron Price Target to $500

Baird analyst Tristan Gerra raised the price target on Micron Technology (NASDAQ: MU) to $500.00 (from $443.00) while maintaining an Outperform rating.

“Beyond the 2x expected increase in DRAM pricing in C1Q QoQ, followed by another estimated 40%+ QoQ increase for 2Q, we expect DRAM industry bit growth of just 25% in C2027, which will remain well short of the end demand given our outlook for 60% CoWoS capacity growth YoY for C2027 and the bulk of the new DRAM capacity going to HBM.

HBM demand will be driven by a doubling of content in the upcoming AI GPUs/ASICs. A very tight outlook for DRAM supply in C2027 should prevent any inventory-deleveraging in C2H26. Outperform-rated.”

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