Ahead of the company's earnings report on Wednesday, one of Wall Street's most outspoken bulls on memory chip maker Micron Technology (MU) has reiterated a price target that sits near the top of the analyst range.
Gil Luria of D.A. Davidson, who can fairly be described as Micron's super bull, reaffirmed on Monday a $2,000 price target, implying roughly 100% upside from current levels, according to Yahoo Finance data. The average analyst target for Micron stands at $1,520.
The investment thesis is highly consistent with Luria's earlier research on Micron. "Memory is a critical component for running AI large models, and that will not change," Luria said. "The more memory, the better the model performs; the more memory, the faster inference runs; the more memory, the longer the context window. Every participant in the market keeps saying their memory supply falls far short of demand. Demand is still surging, while new supply will not arrive for at least another year. The valuation multiples the market is assigning already price in the end of the memory cycle, yet AI compute demand continues to rise."
Luria added that the recent success of Meta's (META) Muse, a striking innovation at the interaction layer, has opened up entirely new application scenarios for consumers. "Just a few weeks ago, we worried that memory demand from Meta would weaken—now that possibility looks very unlikely," he said.
"This memory industry cycle is a true super cycle," Luria continued. "There is a mismatch in market expectations: investors have concluded the memory cycle is over, yet they are bullish on continued CPU growth through 2030. We believe the AI mega-cycle is a complete cycle spanning GPU, CPU, and memory together. That is why AMD (AMD) and Intel (INTC) trade at 40-60 times earnings, while Micron trades at just 7 times."
High-bandwidth memory (HBM) and advanced DRAM used in AI servers remain in persistent short supply, significantly tightening the supply-demand balance in the memory chip market. As Nvidia (NVDA), Microsoft (MSFT), Amazon (AMZN), Meta (META) and others race to build out AI infrastructure, advanced AI memory capacity from SK Hynix, Samsung Electronics, and Micron is essentially sold out for most of 2026. Demand is especially hot for Micron's HBM3E and HBM4 products, which are essential hardware paired with Nvidia and AMD AI accelerator chips.
After several years of industry downturn, the memory chip shortage has sharply increased the pricing power of memory makers. Industry experts expect tight memory supply to persist through 2027, creating a favorable environment for leading memory manufacturers such as Micron and SanDisk (SNDK).
J.P. Morgan analyst Jay Kwon said: "Rising unit prices combined with higher shipments are driving continued expansion of the memory total addressable market; the supply-demand gap will persist over the next two years. Investors underestimate the trend of memory demand spreading from GPUs outward to CPUs—although this logic is well known in the industry, the actual supply-demand impact has been overlooked by the market, and that is an important source of upward revisions to future demand expectations."