--- title: "Igniting Micron's Stock Price! This Wall Street Investment Bank Makes a Bold Prediction: \"Memory Share Will Exceed 70%!\"" type: "News" locale: "en" url: "https://longbridge.com/en/news/289844986.md" description: "Wall Street independent firm Aletheia Capital released a \"nuclear-level\" research report on Micron Tech, raising its target price to $1,600. It predicts that the value share of AI memory devices in hardware systems will surpass 70% by 2027, Micron's EPS will grow cumulatively by 15 times from fiscal year 2026 to 2028, and its cumulative free cash flow over these three years could reach $400 billion" datetime: "2026-06-16T01:19:23.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/289844986.md) - [en](https://longbridge.com/en/news/289844986.md) - [zh-HK](https://longbridge.com/zh-HK/news/289844986.md) --- # Igniting Micron's Stock Price! This Wall Street Investment Bank Makes a Bold Prediction: "Memory Share Will Exceed 70%!" Wall Street independent investment research firm Aletheia Capital released an extremely bold research report on Micron Tech (MU), significantly raising its target price to $1,600. It predicts that the value share of AI memory devices in AI hardware systems will exceed 70% by 2027, completely overturning the market's traditional perception of the status of memory chips. Following the report's release, Micron's stock price surged 10% overnight, rapidly heating up market sentiment. **Aletheia expects Micron's FY2027 EPS to grow 8.5 times from current levels, expanding by another 1.8 times in FY2028, for a cumulative increase of 15 times. It also predicts that the company will generate a cumulative $350 billion to $400 billion in free cash flow over the three years from FY26 to FY28.** The core logic behind this forecast lies in the continued surge in prices for HBM and server DRAM, as well as the structural leap in the proportion of memory devices in the bill of materials (BOM) for AI hardware. If the prediction comes true, Micron will become one of the biggest beneficiaries of this round of the AI hardware cycle. ## Target Price Jumps Directly to $1,600, Valuation Framework Completely Shifts Aletheia has raised Micron's target price from the previous $650 to $1,600 in one go, an increase of over 140%, leaving 47% upside from the current stock price. More notably, its valuation framework has undergone a fundamental shift—**moving from a conservative pricing method based on historical peak price-to-book ratios to an earnings-driven framework anchored on a 10x expected P/E ratio for FY2027.** The logic behind this shift is that as AI structurally drives demand for memory, Micron's profitability is no longer suitable for measurement using cyclical historical valuations. Instead, it should be priced based on earnings multiples comparable to those of growth technology companies. ## Expectations for Both HBM and Server DRAM Prices Revised Upward In terms of price forecasts, Aletheia's upward revisions also exceeded market expectations. The report shows that the firm now expects the average selling price (ASP) of server DRAM **to rise another 30% quarter-on-quarter in Q3 2026, far higher than the previous forecast of 10% to 15%; it is expected to continue rising by 10% to 15% in Q4 2026.** Regarding HBM, Aletheia predicts its ASP will double year-on-year in 2027. This judgment is based on the continuous explosion in demand for high-bandwidth memory for AI training and inference, while high technical barriers on the supply side further support the upward shift in the price center. ## Memory Device BOM Share to Exceed 70%, Vera CPU Rack ASP Could Reach $26 Million The most impactful judgment in the report comes from its analysis of the material structure of AI hardware systems. Aletheia points out that the comprehensive value share of memory devices in AI hardware systems is expected to jump from the mid-40% level in 2025 to over 70% in 2027, with memory becoming the most critical core component in AI hardware systems. Taking Nvidia's Vera CPU as an example, the report notes that SoCAAM alone accounted for over 70% of the BOM in the second half of 2026; the ASP for a full-specification Vera CPU rack could reach as high as $26 million. ### Related Stocks - [MU.US](https://longbridge.com/en/quote/MU.US.md) - [MULL.US](https://longbridge.com/en/quote/MULL.US.md) - [MUD.US](https://longbridge.com/en/quote/MUD.US.md) - [MUU.US](https://longbridge.com/en/quote/MUU.US.md) - [MUYY.US](https://longbridge.com/en/quote/MUYY.US.md) - [MUZ.US](https://longbridge.com/en/quote/MUZ.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - ['It Makes Little Sense,' Says Investor About Micron Stock](https://longbridge.com/en/news/289699536.md) - [Why Is Micron Stock Gaining Tuesday?](https://longbridge.com/en/news/289906689.md) - [Micron's Broadcom‑Driven Drop Never Made Sense — Dip Buyers Are Up 40%](https://longbridge.com/en/news/289814739.md) - [Micron bulls are getting even more optimistic about memory trends as earnings draw closer](https://longbridge.com/en/news/289819332.md) - [Ahead of Micron's (MU) Q3 Earnings, Let's Look at Who Owns the Memory Chip Stock](https://longbridge.com/en/news/289614428.md)