Deutsche Bank Raises Micron Price Target to $500 on Tightening DRAM Supply
We recently published an article titled 12 Best Data Storage Stocks to Buy Right Now.
On February 10, Deutsche Bank raised its price target on Micron Technology, Inc. (NASDAQ:MU) to $500 from $300 and maintained a Buy rating, citing tightening DRAM supply conditions and elevated memory pricing. The firm projects that industry shortages could persist through 2027 and into 2028, fostering a structurally more favorable profitability environment for memory manufacturers.
In its fiscal first-quarter 2026 earnings call, Micron Technology, Inc. (NASDAQ:MU) reported revenue of $13.6 billion, up 21% sequentially and 57% year over year, marking its third consecutive quarterly revenue record. Gross margin expanded to 56.8%, an 11-percentage-point sequential improvement, and the company generated record free cash flow of $3.9 billion. All business units achieved record revenue levels, including Cloud Memory at $5.3 billion, Core Data Center at $2.4 billion, Mobile and Client at $4.3 billion, and Automotive and Embedded at $1.7 billion. Robust demand across end markets, combined with margin expansion and strong cash generation, positions Micron to benefit disproportionately from sustained supply constraints and secular AI-driven memory demand.
Headquartered in Boise, Idaho, Micron Technology, Inc. (NASDAQ:MU) is a leading U.S. semiconductor manufacturer specializing in DRAM, NAND flash memory, and solid-state storage solutions, serving data center, AI, automotive, and mobile markets.
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.
READ NEXT: 8 Up and Coming Streaming Companies and Services and 11 Best Canadian Growth Stocks to Buy According to Hedge Funds.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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