Deutsche Bank: AI Fuels HBM Demand, Up 34% from MU and 30%+' Annual Growth Outlook

Deutsche Bank maintains upbeat AI-driven high-bandwidth memory (HBM) demand outlook despite weakness in Micron’s shares. The bank raised its price target to $500, implying about 34% upside from Tuesday’s closing at $373.25, as Micron remains one of the leading HBM suppliers alongside SK Hynix and Samsung. Weathers notes AI workloads are expanding, with HBM demand expected to grow more than 30% annually through 2030, outpacing traditional DRAM’s over 15% CAGR. HBM’s higher silicon intensity and longer wafer requirements are creating supply constraints, enhancing pricing power and enabling longer-term contracts. Micron faces pressure from Samsung’s impending HBM4 start, but the bank sees supply constraints extending through 2027–2028 and projects limited relief until next year. Weathers warns risingDRAM prices could trigger end-user demand destruction, though Micron’s upcoming Wolfe Research address on Wednesday will likely shape sentiment.