NEW YORK, Jan 10, 2026, 11:17 EST — Market closed
- Micron shares jumped 5.5% on Friday following Mizuho’s upgrade of its price target to $390.
- Investors weigh tight memory supply alongside next week’s U.S. inflation figures and interest rate outlook.
- Micron is set to pay its next dividend on January 14, with earnings scheduled for March.
Micron Technology’s stock jumped 5.5% on Friday, finishing at $345.09. The gain adds to a turbulent kickoff for 2026, with analysts arguing that constrained memory supply should support steady pricing. (Nasdaq)
This shift is significant since Micron is key to the “AI server buildout” trade, where demand favors high-end memory that’s tougher to produce and replace on short notice. That dynamic has pushed the stock away from being a straightforward cycle play and turned it into a crowded momentum name—something that can swing in either direction.
High-bandwidth memory, or HBM — stacked DRAM paired with AI accelerators — remains a crucial support, with supply tight across the board. NAND flash memory, used in storage, has also seen constraints, though its pricing tends to shift more quickly when capacity eases.
Mizuho analyst Vijay Rakesh lifted his price target on Micron to $390 from $290, maintaining an “Outperform” rating. He described valuations as “attractive,” though the firm now sees 2026 upside as more limited compared to last year. (Tipranks)
The broader market bounced on Friday following a sharp slowdown in U.S. job growth for December, raising bets that interest rates might ease — a scenario that usually boosts big-growth chip stocks. (Reuters)
Back in mid-December, Micron laid out its outlook, projecting quarterly revenue that would beat estimates. It also revealed a hefty $20 billion capital spending plan for fiscal 2026, aiming to boost capacity amid a constrained market. (Reuters)
In prepared remarks during the call, CEO Sanjay Mehrotra said industry supply would stay “substantially short of the demand for the foreseeable future.” He added that Micron was “disappointed to be unable to meet demand” despite efforts to boost output. (Micron)
Micron plans to distribute its quarterly dividend of $0.115 per share on Jan. 14. (Stockanalysis)
Traders are eyeing Tuesday’s U.S. Consumer Price Index and other inflation reports for signs on where rates might head next, a crucial factor for high-multiple tech stocks, ahead of Monday’s open. (Bls)
The Federal Reserve’s Jan. 27-28 meeting looms as the next key macro event for risk assets. (Federalreserve)
But the trade isn’t straightforward. Memory prices can drop quickly if customers clear out existing stock or if competitors ramp up supply faster than anticipated. Micron has also flagged that its guidance doesn’t factor in potential tariff impacts. (Micron)
Micron is set to release its next earnings report in March, with investors watching closely to see if HBM and server demand can continue to counterbalance any weakness in other DRAM or NAND segments. (Tipranks)
