Micron Technology, Inc. (NASDAQ:mu) is one of them Artificial intelligence stocks are making waves on Wall Street. On January 2, Bernstein SocGen Group analyst Mark Li raised the stock’s target price to $330.00 (originally $270.00), while maintaining an “outperform” rating. Analysts believe MU pricing will continue to strengthen into 2026 due to structural supply lags and accelerating demand for artificial intelligence.
The DRAM and flash memory maker’s shares surged on Friday after Bernstein raised his price target on the stock, suggesting there remains considerable interest in working memory critical for artificial intelligence. While the analysts did acknowledge that MU’s report hinted at upside risks to the 2026 forecast, they believe prices will normalize in 2027.
“We expect DRAM prices to continue rising starting in early 2026 as AI surges data center demand, but supply expansion will take time.”
Company analysts predict that DRAM average selling prices will increase by 20-25% month-on-month due to rising prices of traditional DRAM. However, they noted that recent data suggests there are upside risks.
“For example, Micron’s Q2 guidance suggests greater price increases in the near term (see earnings highlights). We believe prices are likely to continue rising beyond Q1 2026 as capacity additions take time and may also be constrained by cleanroom space constraints.”
Analysts further added that Micron’s revision to fiscal 2026 capital expenditures involves a slight increase, which could be due to lack of available space. That’s why it models that ASP quarter-over-quarter growth will continue into 2026.
Micron Technology, Inc. (Nasdaq: MU) develops and sells memory and storage products for data centers, mobile devices and various industries worldwide.
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Read next: 10 Artificial Intelligence Stocks Investors Are Watching and the 10 Best Artificial Intelligence Stocks to Buy Under $50
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