Key Highlights
- Micron shares finished Friday’s session at $970.20, gaining 2.3% and extending a four-day rally
- KeyBanc projects Q3 DRAM pricing to increase 15%-20% while NAND flash could surge 30%-40%
- The company’s Q3 earnings showed EPS of $25.11, surpassing analyst expectations of $21.39, with revenue soaring 346% annually
- UBS has established a $1,625 price objective; the Street’s average target stands near $1,260 with a “Buy” consensus
- New Street Research elevated its rating to “Buy,” forecasting Micron could achieve a $2-$3 trillion market cap by 2030
Shares of Micron Technology (MU) ended Friday trading at $970.20, representing a 2.3% increase and extending the stock’s winning streak to four consecutive sessions. The memory chip manufacturer has posted a 12% advance over the trailing month, although shares remain beneath their late June high above $1,200.
The stock commenced Friday’s trading at $971.66. With a 52-week trading range spanning $113.46 to $1,255.00, the company currently commands a market capitalization of approximately $1.10 trillion.
Interest in memory semiconductor stocks has intensified following optimistic long-range projections from Sandisk earlier this week. SK Hynix ADRs similarly climbed 0.4% to reach $166.33 during the same trading session.
Memory chip pricing dynamics form the foundation of the bullish investment thesis. According to KeyBanc’s projections, DRAM pricing will advance 15% to 20% sequentially in Q3, with an additional 15% increase anticipated for Q4. Meanwhile, NAND flash memory pricing is expected to surge 30% to 40% in Q3, with a subsequent 15% rise in the following quarter.
Quarterly Results Exceed Expectations
Micron’s latest quarterly earnings, disclosed on June 24, revealed earnings per share of $25.11 compared to the Street’s consensus forecast of $21.39, representing a $3.72 beat. Revenue totaled $41.46 billion, significantly exceeding the $35.91 billion projection. This marked a remarkable 346% year-over-year increase.
The company reported a return on equity of 71.13% and a net profit margin of 55.91%. Management provided Q4 2026 guidance with EPS projected between $30 and $32.
Wall Street Raises Price Objectives
Financial analysts have been progressively increasing their valuations. UBS analyst Timothy Arcuri established a $1,625 price objective, applying an 11x forward multiple to his 2029 EPS projection. He emphasized this valuation accounts for Micron’s sustained earnings capacity under long-term supply agreements.
Wells Fargo elevated its target from $1,220 to $1,525 while maintaining an “overweight” rating. Raymond James increased its objective from $1,100 to $1,500 alongside an “outperform” designation. Cantor Fitzgerald maintained its “overweight” stance with a $1,500 target price.
New Street Research upgraded Micron to “Buy” from “Neutral” with a $1,250 price target, contending that artificial intelligence is diminishing the cyclical nature of memory demand. The research firm anticipates Micron could attain a $2 to $3 trillion market valuation before 2030.
The Wall Street consensus from 38 analysts stands at “Buy” with an average price target of $1,259.97. The breakdown includes four “Strong Buy” ratings, 32 “Buy” ratings, and two “Hold” ratings.
Micron unveiled a $250 million Micron Ventures Paradigm Fund this week dedicated to investments throughout the AI technology ecosystem, spanning model development, computing infrastructure, and enterprise applications.
Regarding institutional activity, Accurate Wealth Management substantially expanded its Micron position during Q2, increasing holdings by 98% to 7,452 shares valued at approximately $8.6 million. Institutional ownership accounts for 80.84% of outstanding shares.
Several headwinds persist. YMTC has surpassed Micron in NAND shipment volumes, and the company’s new $9.3 billion manufacturing facility won’t begin chip production until 2028. Additionally, Michael Burry has expanded bearish positions related to Micron.
Chief Executive Officer Sanjay Mehrotra divested 31,285 shares on July 24 at an average price of $926.83, reducing his ownership by 9.08%. Company insiders have collectively sold 162,179 shares worth approximately $167.8 million during the past 90 days.
From a technical perspective, chart analysts identify approximately $1,012 as an important near-term resistance threshold to monitor.
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