Micron gets aggressive stock price target from veteran analyst

TD Cowen analyst Krish Sankar significantly increased Micron Technology’s stock price target to $1,500 on June 15, up from $660, while maintaining a ‘buy’ rating. The revision reflects expectations of prolonged DRAM pricing strength through the second half of 2027, driven by AI infrastructure demand, which Sankar argues is structural rather than cyclical. Micron’s stock closed at $1,087.99 on June 15, up 10.84%, and traded above $1,128 in premarket activity the following day, marking a 281.36% gain year-to-date—the third-best performance in the S&P 500 this year. The analyst’s outlook hinges on two key factors: a shift in pricing expectations and the growing role of memory in AI. Previously, TD Cowen anticipated price digestion in early 2027, but now expects server pricing to peak in Q3 2026, aligning with sustained CPU demand. Sankar also emphasized that AI infrastructure requires higher DRAM content per gigawatt, creating long-term demand that doesn’t revert like traditional server cycles. Micron’s earnings estimate for 2027 was raised to $150 per share, reinforcing the structural demand narrative. Other firms have followed suit: RBC Capital boosted its target to $1,200, citing a 12th consecutive quarter of DRAM upcycle strength, while Aletheia Capital set a $1,600 target using a 2027 P/E valuation framework. Wolfe Research also increased its projection to $1,250, anticipating DRAM and NAND pricing growth in 2026 and 2027. The stock’s rally reflects broader market confidence in Micron’s position as a critical supplier for AI-driven memory needs. Analysts argue that unlike past memory cycles, AI demand will sustain pricing power, making Micron’s growth trajectory more predictable. With the company already outperforming peers, the revised targets signal optimism about its role in the evolving tech landscape.