Aletheia Capital raises Micron Technology's target price to $1600

Aletheia Capital has raised Micron Technology's target price to $1600 and predicts that the value of AI storage devices in AI hardware systems will exceed 70% by 2027. Aletheia Capital expects Micron's EPS to increase by 8.5 times in fiscal year 2027 compared to the current level, and expand by another 1.8 times in fiscal year 2028, generating a cumulative free cash flow of $350 billion to $400 billion over the three-year period from FY26 to FY28. Aletheia Capital expects the average server DRAM price to increase by 30% month on month in the third quarter of 2026, and by 10% to 15% in the fourth quarter. The average HBM price is expected to double year-on-year in 2027. Micron's stock price rose by over 10% yesterday.