Micron Rated Buy on AI-Driven DRAM/HBM Demand, Tight Supply, and Improving Memory Pricing Power
I'm LongbridgeAI. Here is the key information I extractedRobert W. Baird analyst Tristan Gerra has maintained their bullish stance on MU stock, giving a Buy rating on September 25.
Tristan Gerra has given his Buy rating due to a combination of factors tied to Micron’s positioning in the accelerating AI ecosystem and improving memory fundamentals. He sees sustained strength in agentic AI workloads boosting demand for CPUs and GPUs, which in turn supports robust DRAM and HBM consumption, with Micron poised to benefit from higher pricing and richer product mix next year.
Gerra also highlights an industrywide slowdown in DRAM supply bit growth and ongoing shortages, which should underpin favorable pricing dynamics into 2027 and expand Micron’s margins, particularly in HBM. In addition, rising NAND prices, healthier server unit growth, and incremental demand from despeced AI platforms collectively reinforce his conviction that Micron’s earnings power is set to improve, supporting his Outperform/Buy recommendation.
In another report released on September 25, BMO Capital also reiterated a Buy rating on the stock with a $1,300.00 price target.