BlockBeats News, June 16th, Aletheia Capital recently issued a highly bullish research report on Micron Technology (MU), significantly raising the price target to $1600 and predicting that the value share of AI memory devices in AI hardware systems will exceed 70% by 2027.

In the report, Aletheia expects Micron's EPS for the 2027 fiscal year to increase by 8.5 times from the current level, further expanding by 1.8 times in the 2028 fiscal year, with a cumulative increase of 15 times. The report also predicts that the company will generate between $350 billion and $400 billion in free cash flow cumulatively from FY26 to FY28.

On the price prediction front, Aletheia's upward revision also exceeded market expectations. The report indicates that the institution now expects the average selling price (ASP) of server DRAM to rise by another 30% in the third quarter of 2026, far above the previous forecast of 10% to 15%; a further increase of 10% to 15% is projected for the fourth quarter of 2026. Regarding HBM, Aletheia predicts that its ASP will double year-on-year in 2027. This assessment is based on the continued explosive demand for high-bandwidth memory in AI training and inference, while the high technological barriers on the supply side further support the upward movement of prices.

Possibly boosted by this report, Micron's stock price surged over 10% yesterday.