Micron Technology stock was rebounding midday Wednesday despite strike concerns as an analyst says memory demand isn't going away anytime soon.

D.A. Davidson's Gil Luria raised his price target on Micron to $3,000 from $2,100 on while maintaining a Buy rating on the stock. That new price target implies a 187% increase from Tuesday's closing price of $1,045.56.

Micron is responsible for making memory, a critical component used in both personal electronics and data centers. Memory helps power artificial intelligence, leading to a surge in demand for the hardware.

Shares of Micron have soared 444% over the past 12 months as investors bet that memory will continue to be in high demand. However, the stock has dropped 12% from its all-time closing high of $1,213.65 on June 25 as concerns have crept in that demand will eventually slow.

Luria doesn't see that happening anytime soon. "Memory is a lever for better AI performance," he wrote. "AI models generate better results with more memory, run faster with more memory, and have longer context windows with more memory. That observation is driving the increases in demand that is due to outstrip supply in 2027 and 2028."

Micron shares were up 2.7% to $1,073.41 on Wednesday after initially opening in the red.

The stock's initial decline came after Micron's union at its Taoyuan chip plant in Taiwan secured authorization from its members to strike, according to a Reuters report Wednesday. Union members cast 99% of votes in favor of potential strike action, although the details of any stoppage of work are still under discussion.

Micron didn't immediately respond to a request for comment early Wednesday. In a previous statement on the strike threat in late September, a Micron spokesperson said the company was committed to constructive dialogue with the Taoyuan union.

Micron recently announced pay deals for its Taiwanese production workers amounting to between 35 and 68 months' worth of base salary for the fiscal 2026 year.

However, Micron's Taiwanese unions have been pushing to scrap the existing incentive scheme and replace it with a plan allocating 15% of operating profit to bonuses. The Taoyuan union previously claimed Micron has declined to discuss such a plan. Micron said a mediation session concluded without settlement after the Taoyuan union raised an additional one-time bonus request.

Although it's an American company, much of Micron's manufacturing happens in Taiwan. The company announced in January that it had signed a letter of intent to buy another Taiwanese chip-making facility for $1.8 billion.