Wells Fargo lifts Micron target to $1,220; shares rise over 7%

The bank maintained an Overweight rating, citing persistent memory supply tightness, advanced packaging partnership progress and AI-led HBM demand as potential support for profitability.

Summary

Wells Fargo raised its price target on Micron Technology (MU) to $1,220 from $550 and kept its Overweight rating, pointing to longer-than-expected tightness in memory supply, progress with advanced packaging customer partnerships and what it described as strong execution. The bank also said artificial intelligence-driven demand for HBM (high-bandwidth memory, a performance-focused chip memory used in AI systems) could support profitability. Micron was indicated at $925 in premarket trading, up more than 7% when the report was published on June 8.

Terms & Concepts
  • HBM: High-bandwidth memory used in AI and high-performance computing.
  • advanced packaging: Chip-assembly techniques that improve performance and efficiency.