Micron Technology surged 240% last year, and the rally may extend into 2026. Lynx Equity Strategy has raised its price target to a Wall Street-high $550, forecasting 60% upside for the memory chip supplier. The firm credits improving margins and rising demand from AI infrastructure, especially as data centers shift toward inference workloads.

Gross margin reportedly jumped 10 points in one quarter, signaling strong pricing power. Lynx expects Micron’s revenue to double from FY26 to FY28, driven by high-bandwidth memory adoption. The firm also forecasts FY27 capex to nearly double, aligning with a 50% rise in wafer-fab equipment spending across the industry.

While others cite supply shortages as bullish, Lynx argues new DRAM capacity will come online faster than expected. Despite volatility, the firm sees Micron pushing toward the mid-$400s by mid-year. The stock currently trades around $345.

Why it matters: Micron’s rebound reflects broader semiconductor strength tied to AI demand. With AI chips requiring vast memory resources, suppliers like Micron sit at the center of a critical tech cycle.