MarketMoodz
RBC Boosts Micron Target to $525 on AI Memory Pricing
RBC Capital Markets boosted its Micron outlook, reiterating Outperform and lifting the price target to $525 from $425. The upgrade centers on AI-driven memory pricing and a data-center demand backdrop that RBC expects to persist into 2028.
Key Takeaways
- RBC raises Micron price target to $525 and reiterates Outperform.
- Srini Pajjuri sees earnings upside from pricing strength in memory ahead of next earnings.
- HBM pricing expected to rise; HBM sold out for CY26; HBM4 on track for CQ1 volume shipments.
- Data center now accounts for over half of DRAM revenue; AI demand expected to persist through 2028.
- Micron plans a second DRAM plant in Taiwan; MU up ~49% YTD and ~323% over 12 months.
People Involved
- Srini Pajjuri RBC analyst
Entities Involved
- Micron Technology, Inc. (MU) Memory chip maker
- RBC Capital Markets Investment bank issuing the note
MarketMoodz Analysis
Investors should view this as a potential earnings tailwind for Micron, driven by an AI-fueled pricing cycle that could lift margins as data-center demand remains the dominant DRAM revenue driver. RBC argues that stronger AI workloads are increasing DDR content in servers and expanding high-bandwidth memory use, which could sustain pricing power into 2026–27.
Historically, memory cycles hinge on capex and supplier dynamics, with supply constraints potentially propping up prices. RBC notes a second Taiwan DRAM plant as a near-term factor to monitor, alongside HBM/RAM pricing renegotiations and the ramp of HBM4. Key watch items include Micron’s next earnings print, HBM pricing trajectories, and the pace of capacity expansion that could shape MU’s earnings trajectory into 2026 and beyond.
Source: Original Article
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