Wall Street Is Still Betting on a Memory ‘Super-Cycle.’ Should You Buy MU Stock Here?

Micron Technology (MU) is a stock that is experiencing one of those periods where investors simply cannot turn away. RBC Capital Markets increased their target price for the memory leader to $525 a share from $425 while reiterating an “Outperform” rating. This is a major call, and it comes at a time when Micron Technology stock is already trading at fresh highs.

It is easy to see why this is such an optimistic call. Data centers are now the driving force behind memory demand growth, especially as high-bandwidth memory, or HBM, becomes an essential part of AI servers. This is also a call that assumes AI-related memory demand growth will be able to offset any potential weakness in PCs or smartphones. This is important because this memory super-cycle does not appear to be driven by PCs or smartphones as much as the previous memory super-cycles. Taken together, this is a much better setup for investors.