Micron Technology (MU) is expected to benefit further from an upward trajectory in memory prices, with industry pricing better than the firm has guided, Wedbush said in a Thursday note.
The report said Q2 pricing for both NAND and DRAM memory semiconductors has lifted by high double to even triple digits, leading to higher Q3 estimates revision.
"Net, even with our FQ3 estimates at the top end of consensus, we see room for MU to likely exceed our revised model," the note said, pointing particularly to rising DRAM prices.
The report said there is no reason to shift its positive view with numbers moving higher, demand for AI set to remain robust through 2027, if not 2028, and limited likelihood of oversupply over the next 18 months.
Wedbush maintained its outperform rating on the stock and raised its price target to $1,300 from $550.
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