Biggest Micron bulls on Wall Street say they're even more confident now. Here's why

Markets are underestimating the long-term need for memory chips in the AI buildout, and shares of chipmaker Micron Technology stand to gain more than 30% from their current level, according to several Wall Street banks. DA Davidson doubled down on a $1,000 price target for Micron on Monday, citing "increased conviction" its buy rating. The stock is higher by close to 8% Monday, to more than $800. MU YTD mountain Micron stock year to date. Analyst Gil Luria at DA Davidson sees a "virtuous cycle" for memory makers supplying infrastructure for large language models, the software underpinning much of AI. Specifically, he thinks that memory chip demand in what's called the "key value cache" – an intermediate segment of the LLM processing pipeline – will be greater than markets currently expect. "The bigger the models, the more memory they require. That creates more [key value] cache needs, which requires even more memory. The same models with longer context lengths will provide far better intelligence, which requires even more memory. The longer context makes the models better, which will make bigger models possible and the virtuous cycle continues," Luria wrote. Deutsche Bank also has a $1,000 price target on Micron, which it says is also set to benefit from changing cyclical dynamics in the sector. …