Micron Technology, Inc. (NASDAQ:mu) is one of them Artificial intelligence stocks are getting attention from Wall Street. On January 7, Piper Sandler maintained an overweight rating on the stock and raised its target price to $400 from $275.
Analysts are strongly optimistic about Micron Technology because they believe Micron Technology will have strong pricing power in the future, driven by tight supply and high-value HBM4 product positioning. In an investor note, analysts highlighted how Micron will benefit from tight memory supplies and higher pricing until at least the end of 2026. It believes all signals point to a strong year ahead.
“Tight supply will support pricing throughout 2026: As noted, 2026 supply is effectively sold out and the ability to add capacity is limited. Management noted that pricing for high-value products such as HBM4 will be based on value.”
“We continue to believe the company is extremely well positioned as demand should continue to outpace supply. Overall, Micron Technology appears to be extremely well positioned throughout 2026 and beyond. All incremental signals point to strong performance in 2026. We reiterate our Overweight rating.”
Analyst Harsh Kumar also pointed out that incremental supply requires “new clean room space to accommodate finer line widths, while shrinking line widths is also difficult to achieve. This is why the industry is witnessing an acceleration of multi-year agreements as memory becomes more important due to the engineering difficulty of the current memory generation.”
“As a result, customers are looking for multi-year supply assurance. Driven by node transitions and significant efforts to increase supply, MU expects supply in 2026 to be approximately 20% higher than in 2025.”
Micron Technology, Inc. (Nasdaq: MU) develops and sells memory and storage products for data centers, mobile devices and various industries worldwide.
While we acknowledge MU’s potential as an investment, we believe certain AI stocks offer greater upside potential and less downside risk. If you’re looking for an extremely undervalued AI stock that would also benefit greatly from Trump-era tariffs and homegrown trends, see our free report on AI stocks Best Short-Term Artificial Intelligence Stocks.
Read next: 11 AI stocks the market is watching and 10 AI stocks analysts are watching closely
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