Micron (MU) Stock Surges as Wolfe Research Sets $500 Price Target on AI Memory Boom

Key Takeaways

• Wolfe Research increased Micron (MU) price target by 43% to $500 from $350 before the company’s Q2 FY26 earnings release on March 18.
• Analyst Chris Caso kept his Outperform rating, pointing to accelerated memory price appreciation.
• DRAM pricing projected to climb approximately 100% year-over-year during 2026; NAND expected to gain around 95%.
• Wolfe’s updated financial model anticipates $94B revenue and $44 EPS for 2026, expanding to $125B revenue and $61 EPS by 2027.
• HBM and DDR memory demand from Nvidia and Google infrastructure expected to surge 124% in 2026 and 143% in 2027.

Chris Caso, an analyst at Wolfe Research, significantly increased his price target for Micron Technology to $500 from $350 on Tuesday — representing a substantial 43% boost — while maintaining his Outperform rating on the stock.

Micron Technology, Inc., MU

The revised target arrives just before Micron reports its fiscal Q2 2026 earnings on March 18.

Caso holds the 110th position among more than 12,000 analysts monitored by TipRanks, posting a 63% accuracy rate with an average 26.6% return per recommendation over one year.

His investment thesis centers on a simple premise: memory chip pricing is accelerating faster than market expectations.

Wolfe’s refreshed financial model projects DRAM pricing will climb approximately 100% year-over-year throughout calendar 2026, while NAND prices are anticipated to rise roughly 95%. These substantial increases stem primarily from artificial intelligence infrastructure buildout, according to the firm.

Artificial Intelligence Infrastructure Driving Memory Expansion

Caso’s research concentrated on memory requirements for Nvidia and Google computing platforms. His analysis covered both HBM and DDR memory specifications across their product roadmaps extending through 2027.

The projections are remarkable. Total DDR and HBM memory consumption across these platforms is anticipated to grow approximately 124% during 2026, followed by an additional 143% expansion in 2027.

DDR5 technology is emerging as a crucial AI DRAM component, not solely HBM, Wolfe’s research highlighted — an important distinction that broadens the market opportunity for Micron’s product portfolio.

Artificial intelligence applications are also demanding higher memory capacity per processor. As AI models expand in complexity, computing platforms require substantially more memory for operation — and Micron is a major supplier in this space.

Updated Financial Projections for Micron

Wolfe’s revised model forecasts $94 billion in revenue and $44 earnings per share for Micron during calendar year 2026. Those figures escalate to $125 billion in revenue and $61 EPS for 2027.

With shares trading around $403, the stock’s valuation stands at approximately 6.6 times Wolfe’s 2027 EPS projection — a multiple the firm considers compelling given the anticipated growth profile.

The research firm also presented an optimistic scenario. Should commodity DRAM pricing soar 150% year-over-year in 2026, revenue could reach $160 billion in 2027, with EPS climbing to $80. Interestingly, that 150% projection actually falls short of Trendforce’s current forecast of 166%.

Wolfe’s bullish stance aligns with several other Wall Street firms. Aletheia Capital recently elevated its Micron target to $650. UBS increased its target to $475, highlighting memory supply limitations extending through 2028. Stifel established a $550 target, emphasizing stronger-than-anticipated memory pricing and server DDR5 adoption.

Among 27 Wall Street analysts covering Micron, the consensus rating stands at Strong Buy — with 26 Buy ratings and one Hold. The average price target reaches $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 in the company’s history. These modules enable up to 2TB of LPDRAM per 8-channel server CPU configuration.

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