Micron Adds 1.3% as Intel Extends Memory Scarcity Into 2027

Micron (MU) closed above $1,000 after an analyst upgrade from RBC, which maintained an Outperform rating and $1,500 price target, citing strong memory demand and supply constraints. However, the stock faces risks from potential slowdowns in tech spending and macroeconomic pressures, including rising oil prices and Treasury yields. Micron's valuation and technical performance remain key focus areas for investors.

Intel (INTC) shares rose over 1% in premarket trading after reports of potential discussions with SK Hynix (SKHY) about producing memory chips in the U.S. The stock closed at $108.80 on Thursday, up 7.67%, with analysts adjusting ratings and price targets. Intel's stock is above key moving averages, and momentum indicators suggest buying pressure. The company is a significant holding in several ETFs, including SOXX and XNTK.

Intel (INTC) and SK Hynix (SKHY) shares surged after reports of potential U.S. partnership talks. Intel's Q2 revenue rose 25% YoY, with strong AI and Data Center growth. SK Hynix benefits from AI-driven HBM demand, with FY26 revenue expected to rise over 250%. Intel trades at 100X forward earnings, while SK Hynix trades at 7X.

Intel CEO Lip-Bu Tan warned of a severe memory chip shortage, with prices up 5x-7x, impacting phone and laptop costs. Intel and Micron expect tight supply through 2027, with Intel's 2026 CapEx above $20B. Micron and SK hynix shares have surged, with strong margins from high DRAM and NAND pricing.

TSMC has secured approval for expanding its Longan Park in Taiwan's Hsinchu Science Park, with plans to manufacture chips using sub-1.4-nanometer technology. The expansion, costing NT$95 billion, includes three factories, with the first expected to enter production in 2030. TSMC aims to improve logic density, performance, and power efficiency with its advanced technologies, as it competes with Intel in the semiconductor race.

RBC Capital reiterated an 'Outperform' rating and $1,500 price target for Micron (MU), citing AI-driven memory demand. The analyst expects 'sizable' multiple expansion due to supply constraints and customer agreements. MU stock rose 1.6% in morning trade, with a 6.5x forward P/E. The stock has gained 235% YTD and 500% in the last 12 months.