Key Highlights
- Wall Street firm NewStreet Research raised Micron stock to Buy with a $1,250 price objective.
- Shares ended trading at $949.83 following a 4% advance in the prior session.
- Analysts anticipate the company will produce over $150 billion in yearly free cash flow by decade’s end.
- Latest quarterly results showed $41.5 billion in revenue, representing a 346% year-over-year increase.
- Management secured 16 strategic agreements with major customers that lock in substantial DRAM and NAND volumes until 2030.
- Artificial intelligence applications continue driving expansion, with projections showing roughly two-thirds of future revenue coming from this segment.
Micron (MU) stock attracted positive attention from NewStreet Research as the investment firm elevated its stance on the semiconductor manufacturer to Buy in its most recent analysis. Research analyst Pierre Ferragu established a $1,250 valuation objective after the stock finished Thursday’s trading session at $949.83, marking a 4% gain.
According to NewStreet, Micron appears to be entering a different phase compared to the volatile price swings that traditionally characterized the memory semiconductor sector. The research house highlighted improved earnings predictability, accelerating demand from artificial intelligence applications, and extended customer commitments.
Analyst upgrade reflects changing market dynamics
Ferragu observed that Micron stock has multiplied more than ten times since reaching bottom in April 2025. Throughout this identical timeframe, manufacturing expenses increased approximately 25%, establishing a divergence NewStreet described as unprecedented in previous memory industry cycles.
The investment firm initiated its examination of the current market environment in July. Recent projections estimate total cash holdings exceeding $600 billion by 2030, with yearly free cash flow surpassing $150 billion during the anticipated cyclical high point.
Micron’s most recent quarterly earnings report revealed revenue totaling $41.5 billion. This figure represented a 74% sequential increase and a 346% jump compared to the same period one year prior, extending the company’s streak of consecutive quarterly revenue records to five.
Gross profit margin climbed to 84.9%, more than doubling the metric from twelve months earlier. Chief Executive Officer Sanjay Mehrotra disclosed that data center sales surpassed $25 billion, indicating the division now operates at an annualized pace exceeding $100 billion.
Long-term partnerships enhance revenue stability
Micron established 16 strategic partnerships with key customers spanning data center, consumer electronics, and automotive sectors. These arrangements secure approximately 20% of DRAM shipments and one-third of NAND shipments through the end of the decade.
Executives indicated these agreements incorporate pricing floors designed to maintain gross margins above historical cycle peaks. NewStreet anticipates such contracts will minimize vulnerability to dramatic price fluctuations while supporting steadier revenue streams.
The research firm further projects artificial intelligence applications will comprise roughly two-thirds of Micron’s overall business composition. Analysts forecast 15% compound annual growth extending past 2030, exceeding the memory industry’s historical 20-year average of approximately 10%.
NewStreet identifies high-bandwidth memory products as a primary catalyst for this expansion, given sustained demand from AI systems. The firm additionally expects this product category to command premium valuations relative to conventional commodity DRAM offerings.
Micron provided guidance calling for record fiscal fourth-quarter revenue reaching $50 billion alongside record earnings of $31 per share. These projections, when combined with contracted volume commitments and artificial intelligence memory sales, form the foundation of NewStreet’s optimistic perspective on Micron stock.
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