TradingKey - As of the close on September 21, Eastern Time, Micron Technology (MU) rose 2.77% to close at $1,043.96, touching an intraday high of $1,064.49. Micron's stock price has logged three consecutive trading days of gains recently, with a cumulative gain of over 12%, firmly regaining the $1,000 mark. Meanwhile, the overall rebound in the AI chip and semiconductor sectors has also provided support for Micron's stock price.
DRAM Supply Tightness May Persist as High Prices Continue to Support Micron Earnings
From a fundamental perspective, the core factor supporting the continued rise in Micron's stock price lies in DRAM supply and demand expectations.
Stifel analyst Brian Chin recently pointed out that DRAM shipment growth in 2027 may slow from the high-20% range in 2026 to 15%–20%, but this is due to capacity bottlenecks rather than weakening demand. Supply growth struggles to match demand from AI servers and data centers, which instead may keep DRAM prices and manufacturer profit margins at elevated levels. Stifel maintained its "Buy" rating on Micron and a $1,500 target price.
Stifel expects Micron's fourth-quarter revenue for the fiscal quarter ending late September to grow by approximately 22% quarter-over-quarter to $50.78 billion, essentially above the company's previous guidance of around $50 billion. Meanwhile, Micron's official guidance projects a Q4 gross margin of around 86% and an adjusted EPS of about $31.
On the product side, the AI memory thesis also continues to strengthen. On September 15, Micron announced the launch of the world's first 512GB DDR5 RDIMM server memory module, reaching maximum speeds of 9,200 MT/s, and is currently undergoing next-generation server platform validation with AMD and Intel, primarily targeting AI, database, and high-performance computing demand.
For investors, it is worth noting that Micron will report its fourth-quarter financial results on September 30. However, Micron's stock price currently reflects elevated earnings expectations in advance; therefore, the September 30 earnings report will not only require revenue and EPS to meet expectations, but DRAM/HBM pricing, 2027 supply conditions, and next-quarter guidance may more directly dictate the stock's post-earnings direction.
Micron Stock Technical Analysis
Micron stock price daily chart, Source: TradingView
Looking at Micron's daily stock price chart, as Micron's stock price rose another 2.77% yesterday, it has now broken through and firmly held above the September 8 high of $1,041. Bullish momentum in the market has been further strengthened, while further upside potential for the stock has opened up.
On the upside, the primary target for the rally will be filling the July 1 gap at $1,154. Further up, it may challenge the all-time high of $1,255 and could even reach a new record high.
On the downside, the key support level below to watch is $1,015. If this level fails to hold, the stock price may move down to test the $900 support level.
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