Micron (MU) Seen Benefiting From Prolonged Memory Cycle, TD Cowen Says

Micron Technology, Inc. (NASDAQ:MU) is one of the Buzzing AI Stocks Analysts are Watching. On January 20, TD Cowen analyst Krish Sankar raised the price target on the stock to $450.00 (from $300.00) while maintaining a “Buy” rating. The firm sees cycle strength, shortages, and pricing upside to continue to support MU in the medium term.

According to the firm, memory shortages are worsening rather than improving, which supports further upside to MU’s calendar 2026 earnings power even though estimates remain unchanged, as it is still early.

As DRAM and NAND prices increase and put pressure on budgets, the firm believes this favors multi-year long-term agreements, even though timings and terms remain uncertain.

TD Cowen also anticipates server average selling prices (ASPs) to peak at 200% year-over-year in the second half of 2026 and stabilize at that level. This reflects continued near-term momentum for MU despite its recent strong stock performance.

Overall, Micron is likely to continue outperforming semiconductor stocks in the near-term, but TD Cowen believes that the trade may flip in favor of semicaps in the second half of 2026.

We still think that MU may continue to outperform semicaps near-term (AMAT/LRCX up 30/35% last 1 month vs 45% for MU) as cleanroom constraints cap near-term upside. We think the trade might flip in favor of semicaps in 2H:C26. MU’s recent deal with PSMC is a recent example why we expect to see further upside revisions for semicap in CY27.

Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.

While we acknowledge the potential of MU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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