Micron Technology (MU) has room for its memory-chip upcycle to continue for another five to six quarters, supported by stronger pricing, robust generative AI demand and limited industry supply growth, RBC Capital Markets said Sunday in a report.
RBC said prices for DRAM, the main type of computer memory used in servers and PCs, appear on track to climb 50% in Q2 from a year earlier, while the H2 pricing outlook was raised to double-digit growth.
Prices for NAND, the storage-oriented memory used in solid-state drives, are also set to climb more than 70% in Q2, with double-digit gains expected to continue through the year, the report said.
Hyperscaler capital spending remains strong, and the shift toward inferencing and agentic AI is increasing the amount of memory needed per system, RBC said.
Industry supply growth is likely to stay muted until late 2027 because of limited clean-room space and the ongoing transition to high-bandwidth memory, the report said.
RBC raised its price target on Micron stock to $1,200 from $525 and maintained its outperform rating.
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