New Street’s Pierre Ferragu raises Micron’s price target by 32% citing strong AI-driven memory demand and tight supply.
Micron’s stock traded near $966 on August 14, reflecting a 240% year-to-date gain, outpacing the S&P 500’s 14% rise. Despite this rally, shares remain over 20% below their late-June peak as competitors like China’s YMTC gain market share in NAND shipments.
The memory market remains tight, with much of Micron’s 2027 capacity already allocated due to surging AI demand. Analyst Pierre Ferragu upgraded Micron to Buy from Neutral, setting a new price target of $1,250, implying a 32% upside from Thursday’s close of $949.83.
Ferragu argues that traditional boom-and-bust cycles no longer apply to Micron, as structural AI demand reshapes the memory sector’s dynamics.