Stifel Maintains Buy on Micron, $1,500 Price Target
Stifel analyst Brian Chin reiterated a Buy rating and $1,500.00 price target on Micron Technology (NASDAQ: MU).
“While we expect Micron to report/guide upside to ours/consensus estimates for F4Q(Aug)/F1Q(Nov), we anticipate a more measured rate-of-upside than in recent quarters.
This reflects the phase-in of more revenue from supply agreements (many with collar-based pricing), and near-term bit shipment constraints.
Yet we believe the durability of this memory upcycle continues to be under-appreciated.
Per recent field checks, we expect DRAM bit shipments will decelerate in CY27 (to +15-20% bit growth, versus +mid-high 20% in CY26).
This reflects both timing of new cleanroom and increasingly, even tighter availability of equipment.
While acknowledging the broader meta-debate on rate of AI buildout, and concerns about de-specing of HBM/DDR5 in AI infrastructure, our view is that (1) DRAM bit supply growth would need to be 40-50%+ in CY27 to really bridge the supply deficit, and (2) HBM4 price/bit will likely double (CY27 negotiation should conclude soon), providing some incremental margin/estimate boost in F2Q(Feb).”
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