New York, Jan 7, 2026, 16:15 (EST) — After-hours
- Micron shares down about 1.2%, with the day’s range spanning roughly $335 to $346
- Company set a Jan. 16 groundbreaking for a planned $100 billion New York “megafab”
- UBS and Piper Sandler both moved price targets to $400 on tighter memory supply
Micron Technology Inc shares were down about 1.2% at $339.45 on Wednesday after trading between $335.10 and $346.24, even as Wall Street pushed price targets higher and the company set a date to break ground on a planned New York factory.
The pullback comes as investors crowd into memory and storage names tied to artificial-intelligence spending, where servers need more DRAM — the working memory in computers — and high-bandwidth memory (HBM), a stacked chip used to feed AI processors. Sandisk shares surged 27.6% on Tuesday after Nvidia Chief Executive Jensen Huang highlighted the bottleneck at the Consumer Electronics Show (CES), and Micron and other storage peers also climbed, MarketWatch reported.
UBS analyst Timothy Arcuri wrote that investors “underappreciate the degree to which AI has fundamentally made memory (DRAM in particular) a more strategic asset,” after meetings with Micron’s top team. UBS raised its price target to $400 from $300 and lifted its earnings per share (EPS) forecasts for 2026 and 2027, pointing to what it called severe supply shortages that leave Micron meeting only about 50% to 75% of key customer demand. Investing.com
Micron said the Jan. 16 event in Onondaga County, New York, will mark the start of construction on what it called a $100 billion project — a “megafab,” or sprawling semiconductor plant — with up to four fabrication plants. Chief executive Sanjay Mehrotra called the groundbreaking “a pivotal moment for Micron and the United States,” in the company statement. Micron Technology
Piper Sandler also raised its price target to $400 from $275 and kept an Overweight rating, saying supply for calendar 2026 is “effectively sold out, with limited ability to add capacity.” The firm added that pricing for high-value products such as HBM4 — the next generation of high-bandwidth memory — should be “value derived,” or set off the benefit to customers rather than just cost and supply. Barron’s+1
Micron’s run has outpaced much of big tech, and the valuation debate has not gone away. FactSet data cited by MarketWatch show Micron is projected to post about 93% revenue growth in fiscal 2026 (ending in August), while the stock still trades at a forward price-to-earnings ratio of about 9.2; the same report said Cantor Fitzgerald’s C.J. Muse has tagged Micron as a top pick for 2026.
A Form 4 filing this week showed executive vice president for worldwide sales Michael Cordano disposed of 6,058 shares on Jan. 2 at $285.41, a tax-withholding transaction tied to vested awards. He held 50,681 shares after the transaction, the filing showed.
But memory is still a cycle business, and it turns fast. A wobble in data-center spending, or a sharper supply response from rivals such as Samsung Electronics and SK Hynix, could cool pricing and force analysts to walk back the earnings upgrades embedded in the new targets.
What comes next is less about the $400 calls and more about proof points on supply and pricing. Investors will watch for updates on long-term contract talks and how quickly Micron can add HBM capacity; the company is expected to report results on March 18, according to Yahoo Finance’s earnings calendar.
