Micron shares climb as analysts raise targets on DRAM supply squeeze

Investing.com -- Micron Technology shares have gained around 2.7% in premarket trading on Wednesday after analysts at Deutsche Bank and Citi raised their price targets on the stock, citing a tightening DRAM supply-demand environment that both banks expect to persist well beyond 2026.

Deutsche Bank analyst Melissa Weathers lifted her price target on Micron to $1,500 from $1,000, arguing that DRAM supply tightness "could persist well into 2028 and potentially beyond" as bit supply growth continues to lag demand.

Weathers noted the outlook has grown more constrained since her last update, which had called for a shortage through at least 2027, adding that the next leg of tightness will be driven by growing demand for traditional and low-power DRAM as agentic AI makes workloads even more memory intensive.

Notably, she said these conditions are expected to persist "even despite new and accelerated capacity additions announced in the last 180 days."

Citi analyst Atif Malik raised his price target to $1,200, lifting fiscal 2026 and 2027 earnings estimates on better-than-expected memory pricing year-to-date.

Malik expects DRAM average selling prices to increase 200% in 2026 on strong data center demand and constrained supply, with spot prices already up 52% since the start of January and 21% above current contract pricing, which is a gap Citi said points to further contract price increases ahead.

Micron reports fiscal third-quarter earnings on June 24. Citi's fiscal 2027 earnings per share estimate of $114.73 sits 4% above the Street consensus.

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