Can Micron (MU) Sustain Momentum? Analysts Point to Pricing Tailwinds

• StockStory Top Pick MU +0.88%

Micron Technology, Inc. (NASDAQ:MU) is one of the 10 Trending AI Stocks According to Analysts. As debates around the durability of the memory cycle continue, Deutsche Bank recently took a more constructive outlook on Micron. The firm reiterated the stock as “Buy” and raised its price target to $500 per share from $300.

Given the tight supply and demand dynamics in the memory market, the firm anticipates a favorable environment for Micron in coming quarters.

“…we see the current market environment as remaining favorable for MU in the coming quarters.”

Deutche Bank increased its calendar year 2026 earnings per share estimate to $46.50 and raised the price target on approximately 11 times that figure after adjusting for tight supply/demand dynamics and better pricing.

“The target multiple stands above the company’s 5 yr median NTM P/E ~10x, given unprecedented tightness within the memory market as well as MU’s position as a top memory vendor.”

The firm is increasingly confident in Micron’s ability to capitalize on HBM growth and improved memory-market dynamics. Both of these factors, it believes, will lead to strong growth in revenue and EPS.

Potential downside risks also exist, such as additional supply being brought on by competitors, a deterioration in memory pricing, changes in memory content per application, technological development at Chinese competitors, and more.

Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.

While we acknowledge the potential of MU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.