TLDR
- Micron (MU) shares have jumped 42% this year and 324% over 12 months, powered by AI-driven memory chip demand.
- The company reports Q2 FY26 results on March 18, with analysts projecting EPS of $8.74 (a 460% YoY increase) and $19.03 billion in revenue.
- Aaron Rakers from Wells Fargo boosted his target to $470, pointing to HBM4 momentum and sustainable long-term profitability.
- Mizuho kept its Outperform stance with a $480 target, forecasting May quarter sales of $25 billionā8% higher than consensus estimates.
- TipRanks shows “Very Positive” investor sentiment from more than 853,000 monitored portfolios.
Micron (MU) is gearing up for a crucial moment. The semiconductor company will unveil Q2 FY26 financial results on March 18, and momentum is building ahead of the announcement.
Shares have rocketed 42% since January and an impressive 324% over the trailing 12 months. This rally has been powered by constrained memory supply, climbing chip prices, and robust demand from cloud providers expanding AI computing capabilities.
Analyst consensus calls for Micron to deliver Q2 FY26 EPS of $8.74, marking a massive 460% increase from the prior year. Revenue projections stand at $19.03 billion, reflecting 136% annual growth.
These figures are substantialāand some analysts believe the company could exceed expectations.
Mizuho maintained its Outperform designation and $480 target while forecasting May quarter revenue of $25.0 billion with EPS reaching $11.13. This represents approximately 8% above Street estimates. For the August period, the firm anticipates $27.2 billion in sales, also running roughly 7% ahead of consensus.
Wells Fargo’s Aaron Rakers, a highly-rated five-star analyst, reaffirmed his Buy recommendation while raising his target from $410 to $470. He highlighted sustained earnings visibility and robust traction in high-bandwidth memory (HBM4) technology.
Rakers now forecasts peak EPS between $50 and $60 per share, with normalized earnings capacity of $30 to $40 per share. Importantly, he noted that Micron has committed or sold its entire 2026 HBM productionāand accelerated volume deliveries by one quarter.
HBM4 in Focus
HBM4 technology is anticipated to dominate discussion during the March 18 earnings call. Rakers expects Micron to elaborate on its competitive standing related to Nvidia’s forthcoming Rubin chip generation, including 11 Gbps pin speeds and advantages from its proprietary CMOS base die technology.
He also identified potential 20% to 30% pricing gains for HBM4 compared to HBM3e during the latter half of 2026 as product mix evolves.
Mizuho reinforced the optimistic HBM outlook, observing that HBM3e demand continues strong before HBM4 arrives, with HBM4 commanding 30% to 45% premium pricing versus the earlier generation.
The firm additionally sees positive momentum in NAND flash, propelled by AI requirements for QLC eSSD and migration to advanced flash process nodes. Hyperscaler capital spending is projected to climb 59% year-over-year in 2026, creating favorable conditions for Micron’s pricing strength.
Broader Analyst Sentiment
Beyond Wells Fargo and Mizuho, additional analyst targets have trended upward. Wolfe Research elevated its target to $500, referencing revised DRAM and NAND pricing models. Aletheia Capital jumped to $650, doubling its FY2026 earnings forecast based on AI-related demand drivers.
Micron holds a consensus Strong Buy rating from 27 Wall Street analysts, including 26 Buy ratings and one Hold. The average analyst target of $440.67 suggests approximately 9% potential upside from current trading levels.
On the product front, Micron recently began shipping 256GB SOCAMM2 modulesārepresenting the industry’s highest-capacity LPDRAM configuration for AI servers. These modules incorporate the first monolithic 32Gb LPDDR5X die and deliver one-third more capacity versus earlier generations.
Micron stock is currently trading near $405.
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