Aletheia Capital Sets $1,600 Target for Micron (MU), Predicts Memory to Dominate AI Hardware Value

Aletheia Capital raised its price target on Micron Technology (MU) to $1,600 on June 16, 2026, marking a 150% increase from its prior $650 target. Analyst Warren Lau argues memory components will surpass compute units as the highest-value element in AI systems, justifying a shift from cyclical valuation models to a growth-tech framework using 10x 2027 estimated earnings. The firm projects memory will account for 70% of AI hardware value by 2027, up from 45% in 2025, with some server racks exceeding 90%. Aletheia cited Nvidia's (NVDA) Vera CPU cabinet potentially reaching $26 million due to memory costs. The research predicts Micron's earnings per share will surge 15-fold through fiscal 2028, generating $350-400 billion in cumulative free cash flow from 2026-2028. Server DRAM average selling prices are forecast to rise 30-40% in Q3 2026 and 10-15% in Q4 2026. High-bandwidth memory (HBM) prices are expected to double year-over-year in 2027. German retail data showed DDR5 prices jumped over 400% year-over-year in June 2026. Wall Street remains divided. TD Cowen set a $1,500 target, while Goldman Sachs maintains a neutral $900 rating, warning of cyclical risks.