TLDR
- Micron stock rose 3.5% in premarket trading to $1,005.65, extending a four-session winning streak
- Commerce Secretary Howard Lutnick confirmed the Trump administration is discouraging U.S. companies from using Chinese memory chips
- Apple was specifically contacted by the administration regarding talks with China’s CXMT
- New Street Research upgraded MU to Buy with a $1,250 price target; UBS set a target of $1,625
- Wall Street consensus is Strong Buy with an average price target of $1,569.07, implying over 61% upside
Micron stock jumped 3.5% to $1,005.65 in premarket trading on Monday, riding a wave of positive news around U.S. policy and a fresh round of analyst upgrades.
The move comes after Commerce Secretary Howard Lutnick told The Wall Street Journal that the Trump administration is actively discouraging American companies from sourcing memory chips from China. “It’s not great American companies using Chinese memory,” Lutnick said.
The administration went further, directly contacting Apple about its early-stage talks with China’s ChangXin Memory Technologies, known as CXMT. Apple had reportedly been in discussions with CXMT to supply components for some devices sold in China.
CXMT listed in China recently and has made fast progress in conventional DRAM, capturing 7% of global market revenue in Q2, according to Counterpoint Research. However, U.S. rules require American companies to obtain a license before sharing product information with the Chinese firm.
South Korean rival SK Hynix also caught a lift, with its American depositary receipts rising 4.2% in early trading.
Wall Street Raises Its Bar for Micron
New Street Research analyst Pierre Ferragu upgraded Micron to Buy and set a price target of $1,250. He moved from a Neutral rating after pointing to strong results, tight memory supply, and the possibility that the memory market is entering a longer growth cycle rather than its typical boom-and-bust pattern.
UBS analyst Timothy Arcuri is more aggressive, placing his target at $1,625. He projects EPS of $74.13 in 2026, rising to $184.89 in 2027 and $265.65 in 2028. He expects EPS to stay above $160 into 2029.
Micron stock has risen nearly 700% over the past 12 months, though it remains below its summer highs of more than $1,200.
Memory Prices Are Climbing
KeyBanc expects DRAM prices to rise 15% to 20% in Q3 and another 15% in Q4. NAND prices could climb 30% to 40% in Q3. AI data center spending is the main driver, pulling demand higher while supply stays tight.
Micron recently launched a $250 million fund aimed at AI startups, adding another layer to its push into the AI market.
Across Wall Street, MU carries a Strong Buy consensus from 29 Buy ratings and one Hold over the past three months. The average price target sits at $1,569.07, which would represent more than 61% upside from current levels.
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