Micron Shares Hit New High, As $1000 Level Approaches

Micron Technology’s stock (NASDAQ:MU) has surged to a new all-time high ahead of the weekend at $981, after Susquehanna analyst Mehdi Hosseini more than doubled his price target, citing accelerating DRAM and NAND pricing that suggests the memory upcycle is exceeding even bullish expectations.

Shares of Micron sit 4.84% at $968.26, having briefly touching a fresh all-time high of $981 before settling back. The move extends the chipmaker’s remarkable run over the past year, during which the stock has more than tripled from levels below $300. At current prices, Micron commands a market cap of $1.1 trillion, placing it among an elite group of technology stocks that have crossed the threshold. Today’s latest catalyst was a research note from Susquehanna’s Mehdi Hosseini, who raised his firm’s price target on Micron to $1,750 from $600 while maintaining a Positive rating.

The new target implies upside of more than 80% from current levels and would rank among the highest on Wall Street, surpassing even UBS’s recent Street-high call in the mid-$1,600s.

Pricing Dynamics Exceed Expectations

Hosseini’s upgrade centres on proprietary channel checks that point to memory pricing running well ahead of consensus forecasts. According to the analyst’s supply-chain contacts, second-quarter DRAM average selling prices are tracking toward sequential gains of 50% to 60%, above the firm’s prior expectation of a 50% increase. Even more striking, NAND flash ASPs appear poised to rise 75% to 100% quarter-over-quarter, maintaining the torrid pace seen in recent quarters.

These pricing dynamics reflect a fundamental shift in the memory market. Historically, DRAM and NAND have been notoriously cyclical commodities, with boom-and-bust cycles driven by supply-demand imbalances and aggressive capacity additions. The current cycle, however, is being driven by artificial intelligence workloads that require exponentially more memory content per server. A single AI training cluster can consume more high-bandwidth memory in a quarter than traditional data centres used in a year.

Hosseini indicated he is raising estimates not only for Micron but across his coverage universe of memory manufacturers, suggesting the pricing strength is industry-wide rather than company-specific. The analyst expressed growing confidence in the sustainability of elevated margin profiles, a critical point given historical scepticism about memory companies’ ability to maintain profitability through cycles.

Valuation and Positioning

Price Targets

Micron’s ascent into rarefied valuation territory has been swift. The company now trades at roughly 25 times forward earnings estimates, a multiple that would have been unthinkable for a memory manufacturer just two years ago. For context, Micron historically traded in single-digit earnings multiples, reflecting its commodity-like cyclicality and boom-bust earnings profile.

The rerating reflects Wall Street’s evolving view that Micron’s earnings power has structurally improved. UBS analyst Timothy Arcuri recently argued that Micron could generate annual earnings per share “comfortably above $100” through 2029 and cumulative free cash flow exceeding $400 billion over that period. If those numbers prove accurate, even a $1,750 share price would imply a forward multiple in the high teens, not unreasonable for a company growing earnings at a double-digit compound rate with improving returns on capital.

Micron’s fortunes are inextricably linked to those of its two primary competitors, Samsung Electronics and SK Hynix. All three companies are benefiting from the AI-driven memory boom, but their strategic positioning differs. SK Hynix has emerged as the early leader in high-bandwidth memory, securing the majority of Nvidia’s HBM supply. Samsung, the world’s largest memory manufacturer, has faced quality-control issues with its HBM products but is investing aggressively to close the gap. Micron has ramped its own HBM production and recently qualified its chips with multiple hyperscale customers, though it remains the smallest of the three in this critical segment.

Outlook

The path to $1,750 implied by Susquehanna’s new target would require not only sustained pricing strength through 2026 but also validation that the structural improvements in the memory market are real and durable. Markets will be watching closely to see whether Micron can deliver the sort of multi-year earnings trajectory that would justify such a valuation, or whether the current enthusiasm will give way to the cyclical pressures that have defined the industry for decades. The market is changing they say, memory is no longer cyclical in this era they say, but the proof will be in the pudding. For now, Micron shares have taken holders on an upwards journey that has reached 900% over the past year, and it will take some shaking for sentiment to shift.