Micron Stock Hits Record Peak After HBM4 Prices Leap 50% -- Analysts Rush to Upgrade

This article first appeared on GuruFocus.

Micron Technology (NASDAQ:MU) shares climbed nearly 9% to about $237.50 on Thursday, briefly touching an all-time high near $239.88, as investors cheered reports of rising prices for next-generation HBM4 memory chips.

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The rally followed confirmation that SK Hynix had reached new pricing terms with NVIDIA (NASDAQ:NVDA) for HBM4 supply, setting unit prices around $560, above prior expectations of $500 and more than 50% higher than current HBM3E levels. The agreement fueled optimism across the broader memory sector.

High-bandwidth memory has become central to AI infrastructure buildouts, driving strong demand and tightening supply. Seagate Technology (STX) and SanDisk each advanced more than 10%, while Western Digital (WDC) rose over 5% amid renewed investor enthusiasm for storage and memory names.

The increased target price of Micron by Citigroup to $275 was a result of the anticipated 25% increase in the prices of DRAM. The stock has received sustained pricing strength with an upgrade to Exane Bank to Outperform from Underperform with a target of 270.

Nevertheless, according to the analysts, Micron might still experience design and manufacturing challenges in the HBM4 launch, which could prevent volume deliveries.

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