Micron Technology may see its shares nearly double as the artificial intelligence boom boosts demand for the company’s memory scaling offerings, according to D.A. Davidson. The investment bank began research coverage of Boise, Idaho-based Micron with a buy rating, and a $1,000 12-month price target, suggesting 91% upside from Monday’s close. “Artificial intelligence is creating a longer-than-usual memory cycle as compute deployment and demand generation exist in a positive feedback loop, creating a structurally higher ceiling for memory pricing and demand,” Davidson analyst Gil Luria wrote Tuesday in a 27-page report. “Combined with Micron’s node leadership and what we see as a long duration earnings power story, we see meaningful upside to shares.” Micron is focused on developing memory scaling technologies, using four consecutive Dynamic Random Access Memory (DRAM) nodes and three NAND nodes, according to D.A. Davidson. Nodes are devices that manage data transmission in a network. They enable many electronics, including smartphones and computers, to operate quickly and efficiently, while also supporting data center operations. Micron’s nodes are likely to become more popular as AI booms, lifting sales and the stock, Davidson said. “We see node leadership as a compounding advantage that improves Micron’s cost position with each generation and positions Micron to gain share in higher-margin products across the data center,” Luria wrote. Memory demand has increased as the emergence of next-generation AI has fueled plans to build multi-billion-dollar data centers across the U.S. More than $61 billion flowed into the data center market in 2025 as of late last December, according to S & P Global data. Amid the buildout, increased demand for the hardware that underpins data facilities will help Micron win more customer contracts, Luria wrote. “The signing of five-year [Strategic Customer Agreements] … [will] effectively lock in demand and offer visibility in a manner unlike past cycles while negotiating pricing on what we believe to be a quarterly or more frequent basis,” Luria wrote. Micron shares are nearly 6% higher in early trading Tuesday, building on the past month’s 47% rise. MU YTD mountain Micron Technology is 84% higher in 2026 “We are not arguing that there isn’t a cycle, just that the duration and extent of the cycle may not be priced in properly,” Luria said in his note. Of the 44 analysts covering Micron on Wall Street, 41 give the stock a buy or strong buy rating, LSEG data shows.
