Micron (MU) Stock: Analyst Sets Street-High $500 Price Target After Blowout Earnings

TLDR

• Rosenblatt analyst Kevin Cassidy raised Micron price target from $195 to $500, implying over 100% upside potential.
• Micron reported Q1 earnings of $4.78 per share, beating estimates of $3.96, with revenue up 56.6% year-over-year to $13.64 billion.
• The company guided for a record 68% non-GAAP gross margin in Q2, well above Wall Street’s 52.1% estimate.
• All HBM (High Bandwidth Memory) supply for 2026 is already sold out, with HBM revenue hitting another quarterly record.
• Micron increased fiscal 2026 capital expenditure outlook to $20 billion from $18 billion due to tight supply conditions.

Micron Technology just delivered results that have Wall Street scrambling to update their models. The memory chip maker crushed expectations across the board. Earnings came in at $4.78 per share versus the $3.96 consensus.

Micron Technology, Inc., MU

Revenue climbed 56.6% year-over-year to $13.64 billion. Analysts had expected $12.91 billion. This is the kind of beat that gets attention.

Rosenblatt Securities analyst Kevin Cassidy responded by lifting his price target from $195 to $500. That’s not a typo. The new target suggests shares could more than double from current levels.

Cassidy, a five-star analyst ranked #194 out of 10,182 tracked analysts, has a 58% success rate. His average return per rating sits at 21.10%. His bold call is backed by math, not hope.

The analyst expects Micron to earn roughly $36 per share in fiscal 2027. Apply a 14× earnings multiple and you get to $500.

Record Margins Drive Optimism

The real story is in the margins. Micron guided for a record 68% non-GAAP gross margin in the February quarter.

Wall Street had penciled in 52.1%. That’s a massive gap. The margin expansion comes from three places: higher average selling prices, a richer product mix, and steady cost reductions.

Higher DRAM and NAND prices are holding up. Demand for memory is expected to outpace supply through 2027. That pricing power translates directly to the bottom line.

Micron’s High Bandwidth Memory business is on fire. HBM revenue hit another quarterly record. More importantly, all HBM supply for 2026 is already sold out.

This isn’t speculative demand. Customers are locking in supply well in advance. That speaks to the strength of AI-driven memory needs.

The company is putting money to work. Micron raised its fiscal 2026 capital expenditure outlook to $20 billion from $18 billion. Tight supply conditions are forcing the company to invest in capacity.

Needham maintained its Buy rating with a $300 price target. The firm used a 2.25× multiple on its Q1 fiscal 2028 tangible book value estimate of $133.15 per share. Several other analysts have revised earnings estimates upward following the report.

Micron now carries a Strong Buy consensus rating on TipRanks. That’s based on 27 Buy ratings and two Hold ratings. The average analyst price target sits at $311.68, implying 25.4% upside from current levels.

Year-to-date, MU stock has surged nearly 196%. The stock did pull back 12.74% over the past week. Short-term volatility hasn’t changed the long-term thesis.

Cassidy noted that long-term supply deals could eventually limit future price gains. He expects slower growth in revenue and margins after 2027. For now, the setup looks strong through at least the next two years.

Micron is trading at a P/E ratio of 30.63. Analysts forecast earnings of $18.04 per share for fiscal 2026. Revenue growth over the last twelve months hit 48.85%, reaching $37.38 billion.

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