Wells Fargo analyst Aaron Rakers raised the firm’s price target for Micron Technology from $550 to $1,220, according to a MarketBeat alert, maintaining an “Overweight” rating. The upward revision pushed Micron shares up more than 7% to $925 in pre-market trading.
The pricing update follows a sector-wide semiconductor selloff on June 5, when Micron stock plummeted 13.25%. That drop occurred after Broadcom issued cautious artificial intelligence chip guidance and a strong May jobs report renewed investor concerns over sustained high interest rates.
Rakers cited prolonged constraints in the memory supply chain and advancements in high-bandwidth memory packaging as the primary drivers for the revised financial outlook. High-bandwidth memory serves as a critical component for scaling AI data centers.
Tesla CEO Elon Musk publicly validated the long-term memory demand thesis, stating that physical chip manufacturing capacity remains a primary bottleneck across the tech industry. Competing Wall Street firms hold similar outlooks, with Cantor Fitzgerald raising its target to $1,500 and Morgan Stanley increasing its target to $1,050.
What the Synchronized Wall Street Upgrades Mean for AI Memory Supply
The simultaneous target increases from Wells Fargo, Cantor Fitzgerald, and Morgan Stanley suggest a financial consensus that the June 5 selloff was a cyclical correction rather than a fundamental demand shift. Prior to the 13.25% drop, Micron hit a 52-week high of $1,089.29.
The unified Wall Street response, coupled with Musk’s capacity warning, indicates that hardware bottlenecks for AI development are expanding from processing units to memory supply. This structural hardware deficit places established memory fabricators in a strong pricing position through the end of the year.