- D.A. Davidson analyst Gil Luria raised his Micron price target to $3,000 from $2,100, the highest on the Street, reiterating a Buy rating and implying 187% upside from Tuesday's $1,045.56 close.
- Luria's thesis: memory demand outstrips supply through 2027 and 2028 because larger memory capacity improves AI model performance, speed and context windows, and he reads 'de-specing' as a future demand driver rather than a bearish signal.
- Micron has secured about 50% of revenue through long-term strategic customer agreements with customers including Amazon, Microsoft, Google, Nvidia and Apple; Phillip Securities puts 26 secured supply commitments at over 35% of revenue through 2030 with $150 billion of remaining performance obligations.
- Micron's Q4 net profit rose tenfold to $38.4 billion with record gross and net margins, while DRAM and NAND average selling prices climbed 232% and 383% year over year.
- Near-term risk: about 99% of union members voting at Micron's Taoyuan, Taiwan facility backed strike authorization over bonus and profit-sharing, with no strike date set.
Quotes
“This all means Micron is on a growth trajectory for the next 3-5 years, which is what the market has not yet acknowledged”
“We used the last two days as an opportunity to talk ourselves out of this high price target, but were unsuccessful”
“the memory and storage chip shortage will persist beyond 2027”