Memory Super Cycle Continues! Super Bull Reiterates $2,000 Price Target Ahead of Micron Earnings

Cailianshe, September 29 (Editor: Bian Chun) Ahead of Micron Technology's earnings release on Wednesday, a super bull of the memory chip giant reiterated a $2,000 price target for the stock, approaching the highest level on Wall Street.

The $2,000 price target set by D.A. Davidson analyst Gil Luria is approximately 100% higher than Micron Technology's latest closing price. Relevant data shows that the average price target for Micron among analysts is $1,520.

Micron Technology fell 2.61% on Monday, closing at $1,053.98. Year-to-date, the stock has cumulatively risen 234%, benefiting from AI-driven memory demand.

Luria pointed out that memory is key to the operation of large AI models; the larger the memory capacity, the better the model, the faster the inference, and the longer the context window. Market participants have repeatedly stated that their memory supply falls far short of demand. Demand continues to surge, while new supply will take at least another year to catch up. The current valuation multiples priced in by the market already reflect the end of the memory cycle, but demand for AI computing power continues to grow steadily.

Luria also stated that the recent popularity of Meta's Muse interactive application helps alleviate market concerns about weakening memory demand. "Just a few weeks ago, we were worried that Meta's demand would decline, but now it seems unlikely that this will happen," he said.

Luria further emphasized that this cycle is a "trinity" super cycle of GPU, CPU, and memory. He pointed out a mismatch in market expectations: investors anticipate the end of the memory cycle, yet remain bullish on the continued growth of CPUs through 2030. The P/E ratios of AMD and Intel are around 40 to 60 times, while Micron's is only about 7 times.

Due to the continuous shortage of High Bandwidth Memory (HBM) and advanced DRAM used in AI servers, the supply and demand in the memory chip market have tightened significantly.

For most of 2026, companies such as SK Hynix, Samsung Electronics, and Micron have basically sold out their high-end AI memory capacity, as customers including NVIDIA, Microsoft, Amazon, and Meta are racing to build AI infrastructure.

The shortage has driven a significant rise in memory chip prices, giving suppliers stronger pricing power after years of industry downturn. Experts expect the tight memory supply situation to continue until 2027, creating a favorable environment for leading memory manufacturers such as Micron and SanDisk.

JPMorgan analyst Jay Kwon stated, "Driven by both price and volume, the total addressable market for memory continues to expand, and the supply-demand gap will persist for the next two years. Investors seem to underestimate the trend of memory demand expanding from GPUs to CPUs, which remains a key factor for future upward revisions in demand expectations."

Micron will announce its financial results for the fourth quarter of fiscal year 2026 after the market closes on Wednesday. This earnings report is not only important for Micron itself but will also serve as an important window to observe the prosperity of the DRAM, HBM, and even the entire AI data center industry chain.