Micron’s price target was raised to $400 by Bank of America due to rising DRAM and NAND prices and limited supply

Wall Street analysts are raising price targets on chip stocks Intel, AMD, and Micron as earnings season once again dawned upon us.

The focus of the boosts is on memory pricing, server sales, foundry progress, and how much product these companies can actually deliver in 2026.

First, it was Bank of America, which raised its price target on Micron to $400 from $300. Analyst Vivek Arya has a buy rating on the stock and said the new target points to about 16% upside. Micron’s MU stock is up almost 264% over the last 12 months, driven by higher memory pricing and limited supply across the chip market.

Vivek pointed to rising spot prices for DRAM as a key driver. He wrote, “The last few weeks, spot and contract pricing for both DRAM and NAND have been exceptionally strong.” He added that pricing in the near term looks aggressive, but said the strength should carry into the first quarter of 2026 before slowing, while still growing, in the second quarter.

Vivek said disciplined spending by Samsung is helping keep supply tight. He wrote that:-

“While SK Hynix and Micron have planned for substantial capex hikes this year, we flag industry clean room space remains limited, with material equipment installation and volume production still likely two to three years away.”

Vivek also said his target values Micron at about three times its projected price to book value for calendar year 2027, a level that is expensive by historical standards, tying it to the ongoing memory upcycle and expected earnings growth.

On Wall Street, Micron remains heavily favored, as out of 44 analysts tracked by LSEG, 40 rate the stock a buy or strong buy, though the average target still points to a possible 12% pullback.

Intel and AMD see price upgrades too, thanks to server demand and pricing power

Meanwhile, KeyBanc upgraded Intel and AMD stocks to overweight, raising Intel’s price target to $60, implying about 36% upside from Monday’s close.

Intel’s stock surged by 129% over the past year. Analyst John Vinh said Intel is largely sold out of server CPUs for 2026 as data center demand stays high across the chip space.

Because of that demand, Intel is considering raising average selling prices by 10% to 15%. John also flagged progress in Intel’s foundry business. He said yields on Intel’s 18A process have improved to more than 60%.

“While not best in class, as TSMC was at 70% to 80% when it launched 2nm, with INTC’s aspirations of being the number two foundry supplier, 60% plus yield is significantly better than SF2 at Samsung Foundry, which we believe is less than 40%,” said John.

The analyst added that Intel has already landed Apple as a customer for 18A, covering low-end processors used in MacBooks and iPads. He added that Intel and Apple are in talks to use Intel’s 14A technology for low-end mobile processors in iPhones.

He also said Amazon, Alphabet, and Meta have shown interest in Intel’s advanced packaging technologies, adding more demand signals for the chip business.

KeyBanc also raised its price target on AMD to $270, implying about 30% upside. AMD’s stock is up 77% over the past year.

John said AMD is largely sold out of server CPUs for the year and may also raise prices. He expects AMD’s AI GPU revenue to reach $14 billion to $15 billion this year, driven by MI355 demand in the first half and a significant ramp in MI455 shipments in the second half, keeping pressure on supply across the chip market.

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