Raymond James raised his target price for Micron Technology ahead of its June 24 earnings release, with market focus on whether AI-driven storage demand can continue to boost performance and valuation. The report noted that Micron's stock price hit a new intraday high, and its market capitalization joined the trillion-dollar club.
Target price raised to $1100
The investment bank raised its target price for Micron from $530 to $1,100. The report cited analyst Melissa Fairbanks as saying that demand for related storage products remains strong, and prices are staying high.
Fairbanks stated that after recent contact with supply chain companies, the team observed that supplies for the next few years are largely sold out, and customers have a clearer expectation of long-term demand than in the past.
Supply chain research indicates continued demand
The report states that Raymond James' team recently traveled to South Korea and Taiwan to meet with Samsung Electronics, SK Hynix, and other supply chain companies to assess the supply and demand situation in Micron's industry.
According to them, it's not just a single customer increasing their investment, but multiple customers simultaneously increasing their procurement and capital expenditures. This has led to higher market expectations for the duration of AI-related storage demand.
- Target price: Raised from $530 to $1100
- Earnings release date: Micron will release its earnings on June 24.
- Survey participants included supply chain companies such as Samsung Electronics and SK Hynix.
Geopolitical tensions remain a potential source of disturbance.
The report also noted that tensions between the US and Iran could pose risks to supply chains. If shipping through the Strait of Hormuz is disrupted again, the market may reassess the pressures on chip supply and logistics costs.
However, Raymond James' assessment remains optimistic. The firm believes that the risk of slowing demand and falling prices in the short term is not significant; the real concern is whether geopolitical events will create new bottlenecks on the supply side.
