Micron (MU) stock soared and Wall Street analysts revised their price targets higher Thursday morning in response to the memory producer’s blowout fiscal third-quarter earnings report.
Following Wednesday’s market close, Micron reported adjusted Q3 earnings of $25.11 per share on revenues of $41.46 billion, which beat Wall Street’s respective expectations for $21.05 per share and $36.28 billion. That top line was 346% higher year-over-year, while earnings were more than 1,200% greater than the year-ago period. Gross margins of 84.9% also beat the consensus mark of 81.7%.
Guidance for Micron’s fiscal fourth quarter also went above and beyond. The company’s outlook for $50 billion easily eclipsed consensus estimates for $50 billion, gross margin outlook for 86% topped expectations for 83.4%, and adjusted earnings of $30 to $32 per share were well ahead of the average $25.43 target.
The glowing report triggered price-target upgrades from a Wall Street analyst community that was already bullish on Micron’s shares.
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Wedbush, Argus, and More Cheer MU Stock
Micron delivered a “much needed drop the mic quarter to alleviate memory concerns,” Wedbush analyst Dan Ives (Outperform) wrote in a Thursday research note.
“With greater nervousness around the AI trade following the [Korea Composite Stock Price Index] performance earlier this week and bears coming out of hibernation mode to scream fire in a crowded theater, this shows the memory and chip trade is well-intact and still in the early stages of playing out with the AI Revolution still in the third inning,” he says. “The message is clear from customers and CIOs: the rapid pace of AI adoption is underway and the focus is finding enterprise and department level use cases to launch in [the second half of 2026] … this is very good news for chips, infrastructure, and software.”
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Micron also said it has 16 strategic customer agreements (SCAs) in place, which Ives says create an elongated period of visibility—a positive that will bleed down to shareholders later this year.
“Micron (and we believe its peers) not only have unprecedented certainty around future cashflow (tied to a significant portion of their business), but this visibility arguably provides Micron with the ability to utilize this cashflow in a more shareholder-friendly manner,” he writes. Specifically, Micron announced that it would return 100% of its free cash flow to shareholders starting in December of this year, which follows the expiration of CHIPS Act provisions that restrict certain uses of cash.
[table “393” not found /]Ives raised his price target on MU stock to $1,400 per share, which implies 34% upside from Wednesday’s closing price.
Stifel analysts, who reiterated their Buy rating, also highlighted the SCAs, which cover 25% of revenue. “Even more impressive are the terms, with committed volumes but also a favorable pricing structure designed to keep ASP/bit (and GMs) within prescribed, historically high ranges,” they write. “Micron expects 50%+ of revenue to be covered under SCAs—in our view, a best-of-both-worlds blend of fixed and floating ASP exposure.” Stifel also has a $1,500 price target on MU shares.
Argus Research analyst Jim Kelleher lifted his price target even higher, from $540 previously to $1,500 (43% upside), saying that “Micron is in the early stages of broad-based memory demand growth driven by consumer, enterprise, cloud data center, and AI.”
He also pointed out a laundry list of earnings highlights, including “Data Center revenue exceeding $25 billion for the quarter and establishing a $100 billion annualized run rate. Data Center SSD revenue exceeded $5 billion, more than doubling sequentially. DRAM and NAND industry demand continues to ‘significantly exceed’ industry supply. The company expects tight conditions to persist beyond calendar 2027 as a result of AI-driven demand across all segments coupled with structural supply constraints.”
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William Blair’s Sebastien Naji and Ana Bilbao, who also see MU stock hitting $1,500, maintained their Outperform rating while trumpeting Micron’s fiscal Q3 results.
“DRAM and NAND price inflation remains the key driver of Micron’s impressive revenue and earnings growth, and there are limited signs of relief on the horizon as AI bit demand growth outpaces the rate that new cleanroom space can come online,” they say. “Given the strong likelihood of continued ASP growth in the coming quarters and improving revenue visibility thanks to a rapidly expanding set of long-term agreements (SCAs) with key customers, we see potential for more durable earnings growth.”
Micron is one of the best-rated tech stocks on Wall Street right now. According to data from S&P Global Market Intelligence, the company currently enjoys 38 Buy-equivalent ratings versus just five Holds and not a single Sell. That’s driven by their views for long-term (the next three to five years) earnings growth, which currently sit at a wild 171% annual pace on average. A mean price target of $1,338.83 implies 27% upside over the next 12 months.
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