By Adam Clark
Micron Technology stock was falling early Wednesday amid a wider selloff in technology stocks. However, prices for its memory chips are only heading upward.
The shares were down 3.2% in premarket trading. Futures tied to the tech-heavy Nasdaq 100 were down 0.6%.
Micron has become a volatile stock after a nearly 850% gain in the past 12 months. However, Barron's has previously argued it could double from its current levels as booming memory demand driven by artificial-intelligence hardware moves it beyond its normal boom-and-bust cycle.
Data on memory contract prices showed some standard configurations of DRAM, or dynamic random-access memory, were up around 3% in June from the previous month, while NAND flash memory rose 2.4%, wrote KeyBanc analyst John Vinh in a research note Tuesday.
"While the industry is building out capacity in response to AI-driven DRAM/HBM demand, meaningful capacity is not expected until 2027, which still will not be meaningful enough to close the gap," wrote Vinh.
"Given the constrained supply environment, industry production discipline, and outsized data center demand for HBM and DDR5, we anticipate a continued strong demand and positive pricing trends through 2026 for both NAND and DRAM," he added.
Vinh has an Overweight rating and $1,600 target price on Micron stock.
Write to Adam Clark at adam.clark@barrons.com
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