Baird Raises Micron Price Target to $1,520

Baird analyst Tristan Gerra raised the price target on Micron Technology (NASDAQ: MU) to $1,520 (from $1,280) while maintaining an Outperform rating.

“We are incrementally positive on Micron near- and medium term, owing to 1) the recent surge in agentic AI demand, notably driving CPU demand and which we expect will be ongoing next year; 2) a deceleration in DRAM supply bit growth outlook industrywide for 2027 versus this year; 3) a higher margin profile expected for HBM next year.

We model AI CPU unit growth industry-wide of about 40% for 2027, and we are raising our DRAM pricing assumptions for 2H26.

Outperform-rated We are incrementally positive on Micron near- and medium term, owing to 1) the recent surge in agentic AI demand driving CPU and GPU demand, which we expect will be ongoing next year; 2) a lowerthan-previously expected DRAM supply bit growth outlook industrywide for 2027; 3) higher margin profile expected for HBM next year.

A surge in agentic AI demand, which notably drove Nvidia GPU lead times from 6 weeks to nearly 40 weeks within the past three months, is also driving, per channel feedback, a 50% YoY increase in EPYC units for 2027 along with an expected low-30% YoY increase in Intel’s CPU units.

We also expect Nvidia to ship 5M units of stand-alone Vera (LPDDR5X) in 2027, for a blended expected unit AI CPU growth of 40% YoY.

Total DRAM bit growth outlook has increased to 30%+ for 2026, and is expected to decelerate to 20% growth in 2027 including HBM (expected to grow in the 60%s YoY).

Acute shortages are expected to persist in 2027. Server unit growth is expected to accelerate from 18-19% in 2026 YoY to 20-22% in 2027.

CXMT bit growth of 45% this year will sharply slow down next year.”

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