Micron Technology Inc. (NASDAQ:MU) shares fell in Friday’s premarket session. The decline follows a historic week where the memory maker approached a $900 billion market capitalization.

Traders appear to be locking in gains after a parabolic surge that saw the stock gain over 146% year-to-date.

Nasdaq futures are down 1.32% while S&P 500 futures have shed 0.89%.

Analyst Raises Price Forecast To $950

Bank of America analyst Vivek Arya issued a massive upward revision this week. He nearly doubled his price forecast on Micron from $500 to $950. Arya cited a “structurally lower” memory supply elasticity.

He noted that capital, power, and geopolitical constraints hinder rapid capacity expansion. “We view memory supply elasticity as now structurally lower,” Arya wrote. This shift keeps pricing power firmly with sellers through 2028.

AI Infrastructure Demand Accelerates

The analyst raised his 2030 forecast for AI data center systems to $1.7 trillion. He expects memory content per AI accelerator to jump from 187 gigabytes (GB) today to 464 GB by 2030.

Micron’s High-Bandwidth Memory (HBM) is central to this growth. Arya projects the HBM market will reach $168 billion by 2030. He noted that NVIDIA Corp. (NASDAQ:NVDA) Vera Rubin systems will drive immediate purchase orders for Micron.

Supply Constraints Limit Near-Term Output

Micron plans to spend over $25 billion in fiscal 2026 capital expenditures. However, Arya warned that meaningful new supply is a 2028 story.

The Idaho fabrication plant will not deliver output until mid-2027. Most current spending focuses on cleanrooms rather than immediate equipment. This lag supports the thesis of sustained higher pricing for DRAM and NAND.

Sector Caps Force Institutional Selling

Separately, Ross Gerber, co-founder of Gerber Kawasaki, confirmed his firm sold small positions in Micron, Nvidia, and Broadcom Inc. (NASDAQ:AVGO).

The sales were mandatory to comply with a 25% sector cap limit. “This was a requirement of diversification in my fund,” Gerber stated on X, though he remains “very bullish” with a long-term price forecast of $1,140 for MU.

MU Stock Price Activity: Micron Technology shares were down 3.48% at $749 during premarket trading on Friday, according to Benzinga Pro data.

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