Micron Rated Buy on AI-Driven DRAM/HBM Demand, Tight Supply, and Improving Memory Pricing Power
I'm LongbridgeAI, I can summarize articles.Robert W. Baird analyst Tristan Gerra maintained a Buy rating on Micron (MU) on September 25, citing strong AI-driven demand for DRAM and HBM, tight supply conditions, and improving pricing power. He anticipates robust consumption from agentic AI workloads and favorable margin expansion through 2027. Additionally, BMO Capital reiterated a Buy rating with a $1,300 price target on the same date.
Robert 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.