Wall Street is also surprised! Micron Technology (MU.US) pricing is unexpectedly strong, Wedbush directly raised its target price to $500.

Wedbush Securities released a research report, reiterating a "outperform" rating on Micron Technology, Inc. (MU.US), and raising the target price from $320 to $500, citing pricing performance stronger than expected. Analyst Matt Bryson wrote in the report to clients, "Pricing in the first quarter appears to have far exceeded Micron's prior expectations." He added that Micron's guidance for the second fiscal quarter indicates that its average selling price (ASP) is expected to increase by about 30%. Bryson also pointed out that in January of this year, contract pricing for DRAM and NAND flash memory already seemed to reflect a 50% or even higher increase in the first quarter of 2026, but recent signs indicate that some contract prices have even seen triple-digit growth. "Furthermore, the outlook for the second quarter is more optimistic than we previously expected. We originally expected NAND and DRAM prices to increase in the range of 30%-50% (although the specific trends in the second quarter will to some extent depend on the final price levels in the first quarter)." Moreover, post Chinese New Year, the industry sentiment in the storage chip industry has not cooled, with Bryson stating, "On the contrary, we see demand continuing to rise, and the supply situation becoming even tighter." "In conclusion, with the rising data and Micron's stock price still below what we consider typical peak profit valuation levels, we see no reason to change our positive view on this stock (and the entire storage chip industry)."