Melius Research analyst Ben Reitzes set a $2,200 price target for US semiconductor company Micron Technology on local time on the 8th, implying a market capitalization of approximately $2.5 trillion driven by growth in the artificial intelligence memory market. According to The Street, this valuation would position Micron as the sixth-largest company by market cap in US stocks, surpassing Broadcom and Taiwan's TSMC. The projection reflects Micron's dominance in high-bandwidth memory (HBM), a critical component for AI data center infrastructure that Melius Research believes is fundamentally reshaping the cyclical nature of the traditional memory industry.
Melius Research Analyst Raises Micron Price Target Progressively Since April
Reitzes initiated coverage of Micron in April with a $700 price target, raised it to $1,100 in May, and doubled it to $2,200 last month. The analyst stated that the HBM market is fundamentally changing the cyclical structure of the traditional memory industry. HBM is high-performance DRAM used alongside AI accelerators and serves as an essential core component for building large language models (LLM) and AI servers.
Reitzes explained that Micron's HBM production is already mostly sold out through 2027, with approximately $100 billion in long-term supply contracts secured. He assessed that while the memory sector historically experienced sharp price drops during supply gluts as a cyclical industry, the expansion of long-term contracts and minimum price guarantee structures has significantly increased earnings stability.
Micron Reports 346% YoY Revenue Growth in Fiscal Q3
Micron's recent financial results supported this optimistic outlook. The company recorded fiscal third-quarter revenue of $41.46 billion, an increase of approximately 346% year-over-year. Gross margin reached a record high of 84.9%, exceeding NVIDIA's level. Micron's stock price rose approximately 263% year-to-date, with gains surpassing 700% over the past year. Melius provided next-quarter revenue guidance of approximately $50 billion, above market expectations.
Analyst Outlines Conditions for $2,200 Price Target Scenario
Reitzes stated that "the $2,200 price target is a scenario reflecting the premise that strong AI memory demand and long-term contracts continue," adding that "it is necessary to continuously monitor whether prices are maintained even after HBM supply-demand dynamics and new production capacity expansion."
FAQ
What price target did Melius Research set for Micron stocks?
Melius Research analyst Ben Reitzes set a $2,200 price target for Micron Technology on local time on the 8th, implying a market capitalization of approximately $2.5 trillion.
How did Micron's fiscal Q3 revenue compare to the previous year?
Micron's fiscal third-quarter revenue reached $41.46 billion, representing an increase of approximately 346% year-over-year, with a record gross margin of 84.9%.
