"DA Davidson's thesis on Micron centers on duration, arguing that AI is creating a longer-than-usual memory cycle as compute deployment and demand generation exist in a positive feedback loop, establishing a structurally higher ceiling for memory pricing and demand."
"The analyst believes investors are underestimating Micron's demand environment, especially relative to the rest of the semiconductor complex, leaving room for what the firm calls meaningful upside in Micron stock."
"Recent results back the bull case for Micron, with Fiscal Q1 2026 delivering non-GAAP EPS of $4.78 versus a $3.94 estimate and revenue of $13.64 billion, up 57% year over year, with Cloud Memory revenue nearly doubling."
DA Davidson has initiated coverage of Micron Technology with a Buy rating and a price target of $1,000, significantly higher than the Wall Street consensus. The firm believes that AI memory represents a long-term structural opportunity rather than a temporary trend. Micron's stock has recently cooled, but DA Davidson sees meaningful upside potential. The analyst argues that the market is underestimating Micron's demand environment, which is expected to drive higher memory pricing and demand over time. Recent financial results support this bullish outlook.
Read at 24/7 Wall St.
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