What will Micron Technology, Inc. (MU) hit Week of September 14 2026?

RBC Capital, Micron ($MU), Outperform rating, Target price $1,500 Memory cycles will be long-lasting even if price uptrend momentum slows Continued DRAM Upcycle: The current DRAM upcycle is in its 14th quarter (compared to the typical 8-9 quarters), and a visible trend is being maintained that will continue for the next 5 quarters. Sustained AI Demand: Strong AI demand continues, driven by the transition to memory-intensive agents. Conversely, supply remains constrained due to HBM growth limits, cleanroom shortages, and EUV equipment tightness. HBM Positive Factors in 2027: An investigation into the Asian supply chain suggests that HBM prices are expected to rise by 80–100% by 2027, which is projected to act as a strong positive factor for mixed DRAM ASPs. $SKHY, Samsung Attractive Valuation: At 6.5x based on FY27 estimated EPS, the multiple barely reflects the value of SCA and price floor contracts, leaving ample room for expansion. Another Strong Quarterly Earnings Expected: During FQ3 (three months ending August), DRAM contract prices rose by more than 20% (approx. 25%) compared to the previous quarter, exceeding expectations. FQ1 management guidance is expected to outperform the consensus ($5.8 billion in revenue / $34.85 in EPS) by 3–5%. HBM Price Rise: HBM contract negotiations for 2027 are in the final stages, putting the company on track for an 80–100% price increase. Even if the upward trend in DRAM prices slows in the future, HBM will play a role in driving mixed prices. Downside Defense via SCA: Micron announced a take-or-pay SCA backed by $2 billion in cash deposits and financial commitments. Approximately half of the company's revenue is covered by the SCA, 40% of which is protected by a price floor, acting as a safety net even during an economic downturn.