Micron Technology (MU) is enjoying a breakout year. Shares have surged more than 60% in 2025, hitting all-time highs and leaving the broader semiconductor index in the dust.
The latest catalyst came from Citi analyst Christopher Danely, who raised his price target to $175 from $150, implying about 25% additional upside. He kept a Buy rating on the stock, citing stronger pricing and sales momentum in Micron’s core DRAM and NAND businesses.
Investors are now turning their focus to Micron’s upcoming fiscal fourth-quarter earnings on September 23. Analysts expect results roughly in line with forecasts, but the real story may be the company’s guidance. Citi sees first-quarter projections coming in well above Wall Street consensus, setting the stage for further strength.
AI Driving a Memory Supercycle
Micron sits at the heart of one of technology’s biggest trends: artificial intelligence. Demand for memory is no longer driven just by PCs or smartphones. Instead, data centers running AI workloads are consuming vast amounts of DRAM and NAND flash, making up more than half of Micron’s revenue.
AI inferencing—the process of deploying trained models in real-world applications—is set to expand memory needs beyond the high-bandwidth chips used in training. Analysts expect demand to broaden to server DRAM, mobile memory, and advanced NAND used in enterprise solid-state drives. Oracle’s (ORCL) latest earnings underscored this shift, with Chairman Larry Ellison highlighting inferencing as a massive long-term driver for cloud infrastructure.
Adding fuel to the bullish case, Citi projects the memory market will remain in undersupply through 2026, with DRAM demand outpacing supply growth by nearly two percentage points and NAND demand running four points ahead. That backdrop suggests favorable pricing conditions could persist for years.
Valuation and Market Position
Despite its sharp run, Micron remains a relative bargain compared with many AI-linked peers. Citi estimates fiscal 2026 earnings of $15.02 per share—about 26% above the current Wall Street consensus. At current levels, that implies Micron trades at a reasonable multiple for a company benefiting from one of the strongest structural demand drivers in tech.
Micron has also been steadily gaining share in the enterprise SSD market, a segment where it historically lagged rivals like Samsung and SK hynix. With NAND memory expected to play an expanding role in AI systems, this momentum could further boost Micron’s position in the years ahead.
Despite its sharp run, Micron remains a relative bargain compared with many AI-linked peers. Citi estimates fiscal 2026 earnings of $15.02 per share—about 26% above the current Wall Street consensus. At current levels, that implies Micron trades at a reasonable multiple for a company benefiting from one of the strongest structural demand drivers in tech.
Micron has also been steadily gaining share in the enterprise SSD market, a segment where it historically lagged rivals like Samsung and SK hynix. With NAND memory expected to play an expanding role in AI systems, this momentum could further boost Micron’s position in the years ahead.
Conclusion
Micron has transformed from a cyclical memory supplier into a core beneficiary of the AI revolution. With supply constrained, demand accelerating, and analysts racing to lift their estimates, the stock’s climb to fresh highs may be just the beginning. For investors looking for exposure to the backbone of AI infrastructure, Micron’s story is becoming increasingly hard to ignore.
Micron has transformed from a cyclical memory supplier into a core beneficiary of the AI revolution. With supply constrained, demand accelerating, and analysts racing to lift their estimates, the stock’s climb to fresh highs may be just the beginning. For investors looking for exposure to the backbone of AI infrastructure, Micron’s story is becoming increasingly hard to ignore.
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