TLDR
- KeyBanc analyst John Vinh raised Intel’s price target to $70, keeping an Overweight rating
- Intel is expected to raise server CPU prices 10%–15% in Q2, after similar Q1 increases
- Micron’s DRAM and NAND memory prices are projected to rise 30%–50% in Q2
- Micron shares climbed 13.81% in a week, up over 300% in the past year
- Long-term supply agreements are seen as protection against future memory market downturns
Intel and Micron both saw early gains on Monday as analysts pointed to strong and growing demand for chips used in AI servers.
Intel rose 1.7% to $51.25 in premarket trading. Micron was up 3.3% to $378.30 at the same time.
KeyBanc analyst John Vinh said total demand for servers has gotten stronger due to AI-agent workloads. But supply is being held back by a shortage of server CPUs.
Vinh raised his price target on Intel to $70, up from $65, while keeping an Overweight rating on the stock.
He expects Intel to raise server CPU prices by 10% to 15% in the second quarter. The company had already put through similar price increases in the first quarter.
Intel has slightly more room to raise prices than rival Advanced Micro Devices, which is only doing one round of increases, according to Vinh.
KeyBanc also pointed to improving chip yields at Intel. The firm said 18A process yields have reached 65% as the Panther Lake chip ramp continues.
Intel has also secured a design win with Apple for a low-end processor used in MacBooks and iPads. Google’s “Humu Fish” TPU is set to use Intel’s EMIB-T packaging, which KeyBanc sizes at $4 billion to $5 billion in potential revenue.
Micron Rides AI Memory Demand
Micron has rallied more than 300% over the past year. The stock climbed 13.81% in just the past week as investors focused on its role in the AI memory market.
Analysts at Cantor Fitzgerald and RBC Capital reiterated bullish views on the stock. RBC called Micron a “Top Pick” and expects DRAM pricing strength to last into 2027.
Micron’s high-bandwidth memory capacity is already sold out for this year. Its 2026 HBM output is locked in through long-term deals.
Vinh expects DRAM and NAND memory prices to rise 30% to 50% in Q2. He said new long-term supply agreements are structured better than past deals, which were often broken.
“We see the structure of these LTAs as extremely favorable for memory producers as it addresses the shortcomings of past LTAs, which were easily broken, and likely mitigates downcycle risk,” Vinh wrote.
Analysts Stay Bullish Despite Some Caution
Around 26 of 29 analysts covering Micron rate it a Buy. Average price targets point to further upside from current levels.
Erste Group did downgrade Micron to Hold, citing heavy investment needs and the cyclical nature of memory. But the firm still acknowledged strong underlying demand.
Micron recently posted stronger-than-expected quarterly earnings, driven by AI and data center demand.
Vinh’s $600 price target on Micron remains in place with an Overweight rating as of Monday.
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