Micron Stock Surges on AI Chip Demand, Analysts See $500 Price Target

The memory chip maker is benefiting from strong demand for its DRAM, NAND, and HBM products used in AI data centers.

Published on Feb. 23, 2026

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Micron (MU) stock is outperforming the broader tech market, up 32.3% so far in 2026 as the company's memory and storage chips see surging demand from AI data centers. Analysts expect Micron's revenue, margins, and earnings to continue climbing, with the stock potentially reaching a $500 price target by the end of the year.

Why it matters

Micron's core products, including DRAM, NAND flash, and high-bandwidth memory (HBM) used in AI systems, are in high demand as AI adoption accelerates. This has boosted the company's financial performance, with Micron reporting record revenue and earnings growth in the latest quarter. The stock's strong run could continue if Micron can maintain its leadership position in the memory market.

The details

In the first quarter of fiscal 2026, Micron reported revenue of $13.6 billion, up 57% year-over-year, with DRAM revenue contributing 79% of total revenue and growing 69% year-over-year to $10.8 billion. NAND revenue also increased 22% year-over-year to $2.7 billion. Micron's data center NAND portfolio generated over $1 billion in revenue during the quarter. The company's HBM business remains a key growth driver, with production of the high-speed HBM4 product ramping up in the second half of 2026. To meet rising demand, Micron plans to increase capital expenditure to roughly $20 billion in fiscal 2026 to accelerate equipment installations and construction timelines for new fabs.

  • In the first quarter of fiscal 2026, Micron reported record revenue and earnings.
  • Micron expects DRAM and NAND industry bit shipments to increase around 20% in calendar year 2026, constrained by supply.
  • Micron's first wafer output at its Idaho fab could be ready by mid-calendar 2027, with construction on a second Idaho fab to begin in 2026, and a New York fab potentially breaking ground in early 2026.

The players

Micron Technology

A leading semiconductor company that designs and manufactures memory and storage chips for data centers, AI systems, PCs, smartphones, cars, and other electronic devices.

Deutsche Bank

An investment bank that has a price target of $500 on Micron stock.

Phillip Securities

A financial services firm that also expects Micron stock to reach $500.

Rosenblatt Securities

An investment research firm that anticipates Micron stock will keep climbing and touch $500 by the end of 2026.

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What’s next

Micron plans to increase capital expenditure to roughly $20 billion in fiscal 2026 to accelerate equipment installations and construction timelines for new fabs, which could help the company meet rising demand for its memory and storage products.

The takeaway

Micron's strong performance in the memory market, driven by surging demand from AI data centers, has propelled the stock's rally and could continue to push it higher, potentially reaching a $500 price target according to Wall Street analysts. The company's ability to expand its manufacturing capacity will be key to maintaining its competitive edge.