Aletheia Capital reports that it has significantly elevated its price target for Micron Technology (MU) to $1600, driven by a highly bullish outlook on the semiconductor giant's position in the artificial intelligence memory sector. The research firm projects that AI memory devices will capture more than 70% of the value share within AI hardware systems by 2027, underpinning a forecast of 15-fold cumulative earnings per share growth from current levels through fiscal year 2028.

Furthermore, the institution anticipates Micron will generate between $350 billion and $400 billion in cumulative free cash flow from fiscal year 2026 to 2028. This financial optimism is reinforced by aggressive pricing forecasts, with server DRAM average selling prices expected to climb 30% in the third quarter of 2026—far exceeding prior estimates—and HBM ASPs projected to double year-on-year in 2027 due to sustained demand and supply-side technological barriers. Following the release of this analysis, Micron shares surged over 10%.