Wedbush Securities has issued a research report reiterating its "Outperform" rating on Micron Technology (MU.US) and raising its price target from $320 to $500, citing stronger-than-expected pricing performance. Analyst Matt Bryson wrote in a note to clients, "First-quarter pricing appears to have significantly exceeded Micron's previous expectations." He added that Micron's guidance for the second fiscal quarter indicates an expected average selling price (ASP) increase of approximately 30% for its products. Bryson also noted that while contract pricing for DRAM and NAND flash memory in January already suggested increases of 50% or more by the first quarter of 2026, recent indications point to some contracts even seeing triple-digit percentage increases. "Furthermore, the outlook for the second quarter is more optimistic than we previously anticipated. We had projected NAND and DRAM price increases in the 30%-50% range, though the exact trajectory for Q2 partly depends on the final pricing levels in Q1." Additionally, Bryson stated that demand in the memory chip sector has not cooled after the Lunar New Year holiday: "On the contrary, we are seeing sustained demand recovery, while supply conditions have tightened further." "In summary, with key metrics trending higher and Micron's stock price still below typical peak earnings valuation levels, we see no reason to alter our positive view on the stock, and indeed on the broader memory chip sector."
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