NEW YORK, January 4, 2026, 05:50 ET — Market closed
- Micron shares last closed up 10.5% after a Bernstein price-target hike tied to AI-driven memory demand.
- Bernstein said a “record” pricing upcycle is underpinning the global memory market into 2026.
- Traders are watching memory pricing signals, rates-sensitive tech sentiment and Micron’s next earnings timing.
Micron Technology shares surged 10.5% to close at $315.42 on Friday, as a bullish analyst note helped extend a powerful rally in memory stocks tied to artificial-intelligence data centers.
The move matters now because memory is one of the key inputs for AI servers, and tighter supply can push up prices quickly. Higher prices typically flow straight into chipmakers’ margins when they sell more of the same bits at better terms.
Micron is a major supplier of DRAM (dynamic random access memory, a type of working memory used in computers and servers) and NAND flash (a type of storage memory). Both markets are cyclical, meaning small changes in supply-demand balance can drive outsized swings in earnings.
Bernstein analysts led by Mark Li raised their price target on Micron to $330 from $270 and reiterated an “Outperform” rating, arguing that “the record price upcycle is the biggest driver” for the memory market. 1
Bernstein said pricing momentum is running ahead of prior expectations and forecast that prices stay firm through most of 2026 before easing later in the year as additional supply comes online. The note also flagged high-bandwidth memory, or HBM — premium stacked memory used alongside AI accelerators — as a central pillar of the cycle.
Chip stocks broadly rallied on Friday, lifting the Philadelphia Semiconductor Index about 4% and helping major U.S. indexes finish mostly higher as 2026 got underway, a Reuters market report said. (Reuters)
Bernstein also lifted targets for Samsung Electronics and SK Hynix, two of Micron’s biggest global rivals in DRAM and HBM, while maintaining positive ratings on all three names, the note said.
Micron traded between $292.68 and $319.60 on Friday and closed near the top of that range, according to market data. The stock’s jump pushed it further above the $300 level, a price area many traders treat as a psychological marker.
The upgrade landed against a backdrop of strong fundamentals Micron highlighted in its last quarterly update. In its fiscal first-quarter report in mid-December, Micron posted revenue of $13.64 billion and non-GAAP earnings of $4.78 per share, and pointed to strengthening conditions into fiscal 2026. 2
Investors are now looking for confirmation that the pricing cycle is holding, especially in DRAM and HBM, and that supply additions remain constrained by packaging capacity and fab build timelines. Any sign that prices are peaking — or that demand is spreading unevenly between AI and non-AI end markets — is likely to show up first in guidance and pricing commentary.
Before the next session, traders will keep one eye on rates and broader risk appetite after semiconductors helped power Friday’s rebound. Micron and other high-multiple chip stocks tend to react sharply to shifts in expectations for Federal Reserve policy and the economic outlook.
Micron has not announced a date for its next quarterly results. Wall Street earnings calendars currently peg the next report for around March 19, and investors will be watching for updates on HBM output, DRAM pricing, and any changes to capital spending plans. 3
