Bernstein Analyst Jacks Up Micron Stock (MU) Price Forecast by 54% on ‘Record Price Upcycle’

Micron Technology MU <+0.01% ▲ is seeing its stock drop 4.3% in pre-market trading this Thursday, March 19, 2026. This slide is happening despite the company reporting record-breaking earnings last night. Investors are currently worried about the company’s plan to spend an extra $5 billion on new factories, fearing that these high costs will eat into short-term profits. However, Bernstein analyst Mark Li is looking past these immediate fears, significantly raising his price target from $330 to $510 and maintaining a Buy rating.

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Micron’s Results Were Still Extraordinary

Even though the stock is dipping today, Micron’s actual business results were “extraordinary.” The company earned $12.20 per share, which was nearly $3 higher than what experts had predicted. Revenue also soared to $23.9 billion, a massive 196% increase from last year. Mark Li noted that this growth is being driven by a unique situation where “AI makes data center demand balloon but supply expansion takes time.” He believes that because demand is so much higher than what the company can currently build, Micron will have massive pricing power for a long time.

Why Bernstein Is Raising the Target Now

Mark Li’s decision to increase his forecast by 54% is based on the fact that the “memory upcycle” is stronger than anyone expected. In his report, he explained that the industry is entering a “record price upcycle” that will likely stay supported through the end of 2026. He pointed out that while some investors are worried about an AI bubble, the actual data shows that “demand for AI accelerators continues to strain key inputs” like memory chips. This means that as long as big tech companies keep building AI models, Micron is guaranteed to sell every chip it makes.

Micron Benefits from a Structural Supply Lag

The reason Mark Li is so bullish is something called a structural supply lag. This simply means it is impossible for the industry to suddenly make more chips. Building a new “cleanroom,” the super-clean factory where chips are made takes years and costs billions of dollars. Li stated that “capacity addition takes time and likely is constrained by cleanroom space,” which ensures that prices will stay high. For investors, this is good news because it prevents the market from getting flooded with cheap chips, which is what usually crashes the boom-and-bust cycle in this industry.

HBM Plays a Big Role in Micron’s Future Profits

High-Bandwidth Memory (HBM) is the secret weapon behind Micron’s new valuation. These are special, high-speed chips that sit right next to the processors in AI servers. Li predicts that “HBM bit shipments will double in 2026” while pricing remains stable. This is a big deal because HBM chips are much more profitable than the standard memory found in your phone or laptop. By dominating this high-end market, Micron is transforming from a simple parts supplier into a critical partner for the world’s most advanced technology companies.

Is Micron a Good Stock to Buy?

Turning to TipRanks, Wall Street has a Strong Buy consensus rating on Micron stock based on 24 Buy and two Hold recommendations. The average 12-month MU stock price target of $473 indicates 2.44% upside potential.

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