Micron Technology (MU) shares hit a fresh record high on Thursday, closing up 8.7% to $1,133.99, while SanDisk (SNDK) surged nearly 12% during the session, extending a broad rally across memory and storage stocks. The gains followed multiple analyst price target hikes for Micron and comments from Apple CEO Tim Cook on unavoidable price increases due to rising memory chip costs. The move reinforced sustained demand strength for memory chips across the supply chain, with Micron now in focus ahead of its earnings release on June 24.
Wedbush, Rosenblatt, and Stifel Raise Micron Price Targets
Micron saw a wave of bullish analyst calls on Thursday as Wall Street raised expectations for the stock amid strong demand trends in memory markets. Wedbush lifted its target to $1,300 from $550, implying a 22% upside from its last close, and maintained an 'Outperform' rating. The firm cited strong upward revisions to revenue and EPS estimates as NAND and DRAM pricing surged, stating that Q2 pricing rose by double- to triple-digit percentages, with DRAM and NAND expected to climb further in Q3, according to TheFly.
Rosenblatt raised its price target on Micron to $1,200 from $600, a 14% upside from its last close, and maintained a 'Buy' rating. The firm said that higher prices have not slowed demand in data center and server markets amid rising DRAM and NAND demand and limited new supply expected for another 12 months.
Stifel increased its target to $1,500 from $550, implying a 36% upside from the last close, and reiterated a 'Buy' rating. The firm said it is raising estimates well above consensus due to stronger AI-driven demand, according to TheFly.
Apple CEO Tim Cook Confirms Price Hikes Due to Chip Costs
Apple plans to raise retail prices across its hardware lineup to offset rising memory and storage chip costs. CEO Tim Cook told The Wall Street Journal that the increases have become unavoidable amid mounting pressure from suppliers and the broader semiconductor supply chain. "Unfortunately, price increases are unavoidable," Cook said, adding that Apple has tried to shield customers but the situation has "become unsustainable."
Retail Sentiment and Year-to-Date Performance
Stocktwits sentiment on MU was 'neutral,' while message volume was 'low.' For SNDK, sentiment was 'bullish,' amid 'extremely high' message volume. Year-to-date, MU stock has gained nearly 305%, while SNDK stock has surged almost 805% over the same period. Both stocks extended gains into after-hours trading, with MU up 1.16% and SanDisk higher by 1.48% at the time of writing.
FAQ
What drove Micron Technology's record high on Thursday?
Micron Technology closed up 8.7% to $1,133.99 on Thursday following multiple analyst price target hikes from Wedbush, Rosenblatt, and Stifel, and comments from Apple CEO Tim Cook on unavoidable price increases due to rising memory chip costs.
What price targets did analysts set for Micron?
Wedbush raised its target to $1,300 from $550, Rosenblatt raised its target to $1,200 from $600, and Stifel increased its target to $1,500 from $550, all citing strong DRAM and NAND demand and AI-driven growth.
