DA Davidson Raises Micron Target to $3,000 on AI Memory Demand

DA Davidson raised its price target for Micron Technology to $3,000 from $2,100, saying artificial intelligence demand and long-term contracts could reduce the memory-chip maker’s exposure to traditional industry cycles.

The firm maintained its buy rating. Its view centers on high-bandwidth memory and other advanced-memory products, along with contracts that improve visibility into future revenue.

Micron has signed 26 strategic customer agreements. The contracts are expected to cover more than 35% of the company’s revenue by 2030 and include about $150 billion in unfulfilled commitments.

The agreements also support the view that Micron’s gross margins could remain above the peak levels reached in previous memory cycles, even at the minimum prices specified in its contracts.

The new target follows earlier coverage that cited a $2,000 target before the latest increase. Investors will watch whether quarterly revenue continues to grow in fiscal 2027, whether first-quarter gross margins remain near about 86.25%, and whether contract coverage moves toward management’s 50% revenue target.

The outlook still depends on supply conditions. Micron expects about $25 billion in capital spending during the first half of fiscal 2027 and plans to bring additional wafer fabs online from mid-2027 through 2030. If rivals expand capacity at the same time, higher memory supply could pressure prices and reduce profitability.