Key Takeaways
- DA Davidson launches coverage of Micron with a Buy rating and a $1,000 price target—the highest on Wall Street, suggesting potential gains of ~91%
- The optimistic outlook hinges on AI driving a fundamentally different and more sustained memory cycle compared to historical patterns
- In March, Micron secured a groundbreaking five-year supply agreement—an industry first among memory manufacturers
- TD Cowen boosted its price objective to $660 from $550, reaffirming its Buy recommendation
- Micron’s HBM market position jumped from roughly 5% in 2024 to approximately 21% in Q2 2025, surpassing Samsung
Micron Technology garnered attention from two optimistic analyst firms on Monday, with DA Davidson establishing Wall Street’s most aggressive price target at $1,000 per share.
DA Davidson’s Gil Luria launched coverage with a Buy recommendation, contending that artificial intelligence is fundamentally transforming the memory sector in ways that current market valuations don’t fully reflect. His ambitious $1,000 forecast represents approximately 91% potential appreciation from Micron’s latest close of $524.56.
The valuation methodology applies a 10x multiple to Micron’s projected fiscal 2030 earnings of $139 per share, then discounts that figure back three years using a 10% discount rate.
Luria’s fundamental thesis challenges conventional wisdom about memory market dynamics. Traditional memory cycles featured limited demand, where production capacity would eventually exceed market needs, triggering margin compression and cycle termination. Artificial intelligence disrupts this historical framework.
“Every new compute infrastructure deployment enables novel applications, generating additional demand that wasn’t present before the infrastructure existed,” Luria explained.
He highlighted the emergence of multi-year strategic supply partnerships as evidence of industry transformation. Micron revealed a five-year supply commitment in March, marking the first such arrangement among memory providers. Reports suggest Samsung and SK Hynix are pursuing comparable agreements with cloud computing giants.
HBM Drives Growth Trajectory
High-bandwidth memory represents the cornerstone of Micron’s expansion strategy. The company expanded its HBM market presence from approximately 5% in 2024 to roughly 21% by the second quarter of 2025, displacing Samsung as the industry’s second-largest HBM provider.
Luria emphasized Micron’s technological edge—maintaining a four-generation lead in DRAM and three-generation advantage in NAND—as a sustainable cost benefit that investors may be overlooking.
“The market continues to evaluate this cycle using historical downturn frameworks, which seems to discount the strength of the current demand landscape,” he noted.
TD Cowen Increases Price Forecast
TD Cowen elevated its Micron price target to $660 from $550, maintaining its Buy stance. The firm indicated that long-term supply contracts are being negotiated with gross margin parameters establishing floors near 60% and caps in the upper-80s percentage territory.
TD Cowen observed the next significant catalyst for shares centers on business sustainability rather than earnings surprises, with AGI-related CPU requirements potentially extending the DRAM growth narrative over time.
The firm anticipates Micron’s earnings per share will exceed consensus forecasts by roughly 20% in the May quarter—projecting $23 against the $19 Street estimate—and by 18% in the August period at $27 compared to the $23 consensus.
TD Cowen’s calendar 2027 EPS projection reaches $110, modestly above the Street’s $106 estimate.
The firm acknowledged potential near-term challenges during the year’s second half, observing that transitions from elevated to lower gross margins have historically created stock pressure.
Micron’s trailing twelve-month gross profit margin currently registers at 58.44%, with shares trading at a P/E multiple of 23.42.
Melius Research also recently launched coverage with a Buy rating and $700 price target, indicating 41% potential upside.
Micron shares traded at $495 on Monday, declining approximately 5.6% during the session.
