There are Wall Street bulls on memory chip play Micron (MU), and then there is D.A. Davidson analyst Gil Luria.

Let's just call him a super bull on Micron.

Luria reiterated his near-Street-high $2,000 price target on Micron on Monday ahead of the memory maker's earnings on Wednesday, which assumes about 100% upside from current levels. The average analyst price target for Micron is $1,520, per Yahoo Finance data.

More from Yahoo Scout Why does D.A. Davidson see 100% upside for Micron? What makes Micron's valuation attractive compared to peers? How is AI demand driving memory chip shortages? How long will memory supply constraints last?

As with Luria's prior research on Micron, it just makes perfect sense.

"Memory is a critical piece to delivering AI models, and that is unlikely to change," Luria said. "More memory means better models, more memory means faster inference, and more memory means longer context windows. Market participants across the board have been consistently indicating they do not have nearly the amount of memory they need. Demand is still surging and supply at least a year away. Current multiples imply the memory cycle is already over, and yet the demand for AI compute is still making strides. The most recent leap is the popularity of Meta's (META) Muse, a clever advancement in user interface that has awakened consumers to some new use cases. If a few short weeks ago we were worried about Meta's demand diminishing, this now appears unlikely."

Luria added, "The memory cycle is The Cycle. The related dislocation has to do with investors expecting the memory cycle to be over, while underwriting continued CPU growth through 2030. We suspect the AI cycle is actually one cycle for GPUs, CPUs and memory. And so, AMD (AMD) and Intel (INTC) continue to trade at 40-60x earnings while Micron trades 7x."

The memory chip market has tightened considerably as demand for high-bandwidth memory (HBM) and advanced dynamic random-access memory (DRAM) used in AI servers continues to outpace supply.

Companies such as SK Hynix (SKHY), Samsung Electronics (005930.KS), and Micron have largely sold out their premium AI memory capacity through much of 2026 as customers, including Nvidia (NVDA), Microsoft (MSFT), Amazon (AMZN), and Meta (META), race to build AI infrastructure.

Specifically, Micron's HBM3E and HBM4 are seeing brisk demand as they are essential hardware components alongside Nvidia (NVDA) and AMD AI graphics accelerators.

The shortage has pushed memory prices sharply higher and given suppliers greater pricing power after several years of weak industry conditions.

Experts expect memory supply to remain constrained into 2027, creating a favorable backdrop for the industry's largest producers such as Micron and Sandisk (SNDK).