Micron Technologies (MU) was in the spotlight on Friday as Wedbush Securities reiterated its Outperform rating and raised its price target to $500 from $320, citing stronger-than-expected pricing.
Shares rose 1.4% in premarket trading.
“Pricing in CQ1 has seemingly moved well ahead of expectations set previously by Micron,” analyst Matt Bryson wrote in a note to clients, adding that Micron’s guidance for its fiscal second-quarter suggested a roughly 30% increase in the average selling price.
In January, contract pricing for dynamic random access memory and NAND seemed to reflect 50% or more gains in the first-quarter of calendar 2026, but it looks as if some contract pricing has seen triple-digit increases, Bryson added.
“And the setup for CQ2 seems more positive than our previous expectations that both NAND and DRAM would likely climb in the 30%–50% range (though Q2’s progression in part depends on where CQ1 concludes).”
Additionally, it seems as if there has been no fall-off in memory trends after the Chinese New Year, Bryson added. “Rather if anything we’ve seen evidence of a continued lift in requirements and even tighter supply dynamics.”
“Net, with both numbers moving higher and MU trading below what we view as typical peak earnings multiples, we see no reason to shift our positive view on the name (or more broadly the memory industry),” Bryson added.