Analysts have upgraded Micron Technology's price target following projections of sustained memory chip shortages through 2026, driven by strong demand across data centers, AI infrastructure, and consumer electronics. The reevaluation reflects tightening supply dynamics in the DRAM and NAND markets.
- Global DRAM utilization projected to exceed 95% through Q4 2025
- NAND inventory turnover expected to remain below 1.5 times annually through 2026
- Micron’s DRAM market share projected to reach 23% by 2026, up from 18.5% in 2023
- 1α nm NAND fabrication line in Boise, Idaho, expected to contribute incremental supply
- Micron stock up 12% in the past 30 days, reflecting improved sentiment on pricing and margins
- AI and data center demand the primary drivers of sustained memory shortages
Micron Technology (MU) has seen its investment rating upgraded by multiple research firms, with price targets increased amid growing concerns over constrained memory supply through 2026. The outlook is underpinned by persistent demand from AI-driven data centers, cloud service providers, and high-performance computing applications, which are consuming DRAM and NAND flash at accelerated rates. According to updated market models, global DRAM utilization is projected to exceed 95% through Q4 2025, a level not seen since 2021, while NAND inventory turnover rates are expected to remain below 1.5 times annually through 2026. These metrics indicate a structural imbalance between supply capacity and demand, particularly for high-bandwidth memory (HBM) and enterprise-grade SSDs. The company’s production capacity expansion plans, including its 1α nm NAND fabrication line at Boise, Idaho, and advanced packaging initiatives in Taiwan, are expected to contribute only incremental relief. Analysts project that Micron’s share of the global DRAM market will grow to 23% by 2026, up from 18.5% in 2023, assuming continued investment in yield optimization and customer diversification. Market participants, including institutional investors and semiconductor-focused ETFs, are adjusting positioning in response. Micron’s stock has risen 12% in the past 30 days, reflecting improved sentiment on pricing power and long-term profitability. Sector peers such as SK Hynix (000660.KS) and Samsung Electronics (005930.KS) are also being reevaluated amid similar supply-demand imbalances.