Despite Micron Technology (MU.US) shares having surged an impressive 90% by May 2026, Wall Street continues to raise its price targets, reflecting sustained bullish sentiment toward the stock. The company was also featured on our list of top-performing stocks for May.
Recently, on June 3, Morgan Stanley increased its price target for Micron Technology from $520 to $1050, while maintaining a "Buy" rating on the shares. Previously, on May 29, Susquehanna also raised its target from $600 to $1750, similarly upholding a "Buy" rating.
Morgan Stanley's Investment Thesis
Morgan Stanley outlined a clear investment thesis for memory chip stocks, stating that the current persistent memory shortage cannot be resolved quickly. The firm anticipates that supply tightness will last for two to three years or even longer, creating a continuously favorable market environment for memory manufacturers like Micron.
Although memory stocks have already performed strongly in 2025 and 2026, Morgan Stanley believes there is still further upside potential in the current rally.
Susquehanna's Supporting View
Similarly, Susquehanna's investment rationale is based on strengthening average selling prices and growing confidence that high profit margins are sustainable rather than a short-term phenomenon.
The firm pointed out that Micron's core growth driver stems from shifts in the memory and storage industry landscape. The iteration of KV cache offloading technology is dampening manufacturers' willingness to aggressively expand wafer production capacity. Susquehanna believes this will continue to maintain supply tightness and expects this situation to persist through 2027.
Recent Market Volatility and Rebound Catalyst
Recently, as Broadcom's latest disclosed growth prospects for its AI semiconductor business fell short of Wall Street expectations, signs emerged that the investment frenzy in the AI computing power supply chain was cooling. This led to a pullback in popular AI-related tech stocks last Thursday. Coupled with rumors that Nvidia was reducing its use of HBM, Micron Technology shares fell for two consecutive days, declining over 20%.
However, Jensen Huang, during a subsequent visit to South Korea, refuted rumors that Nvidia was cutting high-bandwidth memory usage in its systems due to supply constraints. He explicitly stated the company would use "a lot" of high-speed memory. This news is expected to correct market expectations and benefit the three major memory manufacturers.
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