A wave of bullish analyst sentiment is sweeping over Micron Technology ahead of its quarterly earnings report scheduled for Wednesday. Market experts are significantly raising their price targets, driven by expectations that the artificial intelligence boom will provide a greater earnings tailwind than previously forecast.
Unwavering Confidence from Wall Street
Despite a recent pullback in its share price, Micron remains one of the top performers in the S&P 500 this year, with gains approaching 140% since January. Wall Street strategists appear undeterred by short-term volatility. Firms including Stifel, Citigroup, and Wedbush have lifted their targets, with some now reaching as high as $300. The consensus is overwhelmingly positive, with nine out of eleven analysts currently recommending a “buy” rating.
This optimism is rooted in fundamental supply and demand dynamics within the memory chip market. UBS forecasts substantial price increases for the fourth quarter: 35% for DRAM and 20% for NAND chips. Major cloud service providers are actively securing long-term supply agreements stretching to 2028, contributing to a dramatic drawdown in industry-wide inventory levels. Stockpiles have fallen from approximately 31 weeks at the start of the previous year to just eight weeks currently. This disciplined supply environment is providing significant support for profit margins.
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Strategic Pivot to High-Margin Segments
To further capitalize on these favorable conditions, Micron is executing a strategic shift. The company announced it will discontinue its consumer-focused “Crucial” brand by February 2026. This move will reallocate resources and production capacity entirely toward the more lucrative data center business.
This segment already accounted for 56% of revenue in the last fiscal year and achieved a gross margin of 52%, substantially above the corporate average. The expansion of this enterprise focus is being bolstered by recent regulatory approvals for its planned chip fabrication plant in New York state, where construction is expected to continue through 2041.
Earnings Report Anticipation Builds
All eyes are now on Wednesday’s financial release. Analysts anticipate revenue will surge by 48% to nearly $13 billion. Adjusted earnings per share are projected to more than double compared to the same period last year. Micron’s shares recently traded at $202.20, following a decline of roughly 6.9% over a seven-day period. Reflecting the high stakes, the options market is pricing in potential post-earnings share price movements of up to 9%.
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