Key Takeaways
- Micron (MU) received a 43% price target increase from Wolfe Research, moving from $350 to $500 before Q2 FY26 earnings on March 18.
- Chris Caso, the analyst behind the upgrade, kept his Outperform rating, highlighting accelerating memory pricing trends.
- DRAM pricing is projected to climb approximately 100% year-over-year in 2026; NAND expected to increase roughly 95%.
- Wolfe’s revised forecasts call for $94B revenue and $44 EPS in 2026, expanding to $125B revenue and $61 EPS by 2027.
- HBM and DDR demand driven by Nvidia and Google infrastructure is expected to surge 124% in 2026 and 143% in 2027.
Chris Caso from Wolfe Research significantly increased his price objective for Micron Technology on Tuesday, lifting it from $350 to $500 — representing a substantial 43% boost — while maintaining his Outperform stance.
This upgrade arrives just before Micron’s scheduled Q2 FY26 earnings announcement on March 18.
Caso, who holds the 110th position among over 12,000 analysts monitored by TipRanks, boasts a 63% accuracy rate with average returns of 26.6% per recommendation across a one-year timeframe.
His investment thesis centers on one clear trend: memory chip pricing is accelerating beyond market expectations.
Wolfe’s refreshed financial model projects DRAM pricing will climb approximately 100% year-over-year throughout calendar 2026, while NAND is anticipated to follow with gains near 95%. These projections represent significant increases — with artificial intelligence identified as the primary catalyst.
Artificial Intelligence Powers Memory Growth
Caso’s research concentrated on memory requirements from Nvidia and Google infrastructure. His analysis examined both HBM and DDR memory specifications across their product roadmaps extending through 2027.
The projections are remarkable. Total DDR and HBM utilization across these platforms is forecast to expand approximately 124% during 2026, followed by an additional 143% increase in 2027.
DDR5 is emerging as a significant AI DRAM catalyst alongside HBM, the firm observed — an important distinction because it broadens the overall market opportunity for Micron’s offerings.
AI computing workloads are demanding higher memory capacity per processor. As artificial intelligence models expand in complexity, platforms require additional memory to operate them — positioning Micron as a major supplier.
Updated Financial Projections for Micron
Wolfe’s current model forecasts $94 billion in revenue and $44 earnings per share for Micron during calendar year 2026. These figures are expected to expand to $125 billion in revenue and $61 EPS by 2027.
With shares trading around $403, the stock is valued at approximately 6.6 times Wolfe’s 2027 EPS projection — a valuation the firm considers compelling given the anticipated growth.
The research firm also presented an optimistic scenario. Should commodity DRAM pricing jump 150% year-over-year in 2026, revenue could reach $160 billion in 2027, with EPS hitting $80. Interestingly, that 150% projection falls below Trendforce’s current forecast of 166%.
Wolfe’s bullish perspective aligns with other firms. Aletheia Capital recently established a $650 target for Micron. UBS elevated its objective to $475, highlighting memory supply limitations extending through 2028. Stifel announced a $550 target, emphasizing stronger-than-anticipated memory pricing and server DDR5 adoption.
Among 27 Wall Street analysts covering the stock, Micron holds a consensus Strong Buy rating — with 26 Buy recommendations and one Hold. The average price objective stands at $438.44, suggesting approximately 8.76% upside from present levels.
On the technology front, Micron recently delivered customer samples of its 256GB SOCAMM2 modules — representing the highest-capacity LPDRAM server modules the company has manufactured to date. These modules enable up to 2TB of LPDRAM per 8-channel server CPU.
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