Micron (MU +5.23%) stock extended its three-day winning streak on Monday, rising 4.5% through 10:40 a.m. ET on a raft of good news for the computer memory stock.
This morning, Micron announced it has signed a "strategic" deal to supply computer memory to Anthropic. Separately, two separate Wall Street analysts raised their price targets on Micron stock.
Image source: Micron.
Micron's Anthropic news
We'll begin with the substantive news. Micron and Anthropic are teaming up to collaborate on memory and storage AI architecture design, and will work to balance supply and demand between the two companies as well. On top of this, Micron will deploy Claude Code across Micron and also make an investment in Anthropic's next round of private funding, "Series H."
Micron says its "portfolio of high-bandwidth memory (HBM), DRAM and SSDs underpins performance, power efficiency and total cost of ownership across AI training and inference" -- and Wall Street agrees. Citing the ongoing DRAM supply shortage, Bernstein SocGen Group analyst Mark Li nearly tripled his price target on Micron stock today to $1,300 per share, predicting that Micron's profits will "rise almost vertically this year" and then outpace estimates in 2027 as well.
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What this means for Micron
Needham analyst N. Quinn Bolton is even more optimistic.
Citing the same "robust pricing environment" that enticed Bernstein's Li, he's raising his price target to $1,550 per share and predicting that Micron will sign long-term agreements -- like the one it just signed with Anthropic -- as reasons to expect profits to go higher and stay there longer than most investors expect.
Long story short, 53.5 times earnings may look like a high price to pay for Micron stock. But if you divided that price by "almost vertical" earnings growth, Micron stock could turn out to still be quite cheap.
