Buy Micron Stock, Analyst Says. Look at Soaring Memory Chip Prices.

Micron shares are up 179% this year. (Kyle Green/Bloomberg)

Key Points

• Needham raised Micron Technology’s price target to $300 from $200, maintaining a Buy rating due to rising memory-chip prices.
• Average memory chip prices increased by 162% quarter-on-quarter during Micron’s fiscal first quarter.
• Memory chip supply is expected to remain limited, with no significant relief anticipated in calendar year 2026.

The rise in memory-chip prices will last for several quarters, which bodes well for Micron shareholders, according to Needham.

On Tuesday, analyst N. Quinn Bolton raised his price target for Micron Technology stock to $300 from $200. He reaffirmed his Buy rating for the shares.

Micron is a leader in the markets for dynamic random-access memory, or DRAM, which is used in desktop computers and servers, and for flash memory, found in smartphones and solid-state hard drives. It has also become a key supplier of high-bandwidth memory, or HBM, for artificial-intelligence servers.

“Demand conditions in the data center market remain robust,” he wrote. “We expect the surge in spot market pricing [for memory chips] should drive higher contract pricing over the next several quarters.”

Micron stock was down 2% to $232.71 in recent Tuesday trading.

Bolton said average memory chip prices were up 162% quarter over quarter during Micron’s fiscal first quarter. The analyst expects memory chip supply will be stay limited as the major manufacturers won’t be able to significantly increase production.

“Industry supply/demand continues to tighten with no relief expected” in calendar year 2026, he wrote.

Micron shares are up 179% this year, compared with the 19% gain for the Nasdaq Composite .

Write to Tae Kim at tae.kim@barrons.com