Deutsche Bank Raises Micron Price Target to $1,500

Deutsche Bank analyst Melissa Weathers raised the price target on Micron Technology (NASDAQ: MU) to $1,500.00 (from $1,000.00) while maintaining a Buy rating.

“We are raising our MU estimates into the co’s May-qtr report to reflect strengthening industry demand dynamics, as well as MU’s soft positive-pre announcement last month, where management noted a strengthened financial outlook since its last earnings call.

We now model May-qtr revs above the high-end of guidance (DBe $35.1b), with bias to the upside on continued pricing tailwinds.

Following our recent NDR with MU and our updates to our industry supply-demand model (available upon request), we believe DRAM bit demand is still set to vastly outpace supply growth in the coming years driven by more memory-intensive AI workloads (traditional & low-power DRAM emerging as key growth drivers).

This is despite new and accelerated capacity announcements from across the DRAM ecosystem announced in the last 180 days.

As a result of this tight supply-demand environment, we now see CY27E EPS for MU of $160, with GMs sustaining in the 80%+ range for the foreseeable future.

Notably, we expect a key focus area for this earnings call to be on the co’s previously announced “Strategic Customer Agreements” (SCAs), with significant interest around the specific mechanisms underpinning these agreements (post-settlement pricing, capex co-investments by customers, % of MU’s total business that could be covered by these agreements, etc.).

While we expect some incremental tidbits on these metrics on the call, we expect management disclosures to remain limited given that contract negotiations are ongoing.

All told, we see continued momentum for MU fundamentals into this earnings report, with the industry supply-demand imbalance sustaining (if not worsening) into 2H26, 2027, and well into 2028.

Against this strong fundamental backdrop and with new contracting arrangements bolstering financials, we see a strong case for upward EPS revisions + valuation re-rating closer to semi-peer multiples.

Reiterate Buy rating, raise P/T to $1,500.”

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This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.