Key Highlights
- Wedbush increased its price objective for Micron to $500 from $320, pointing to memory pricing that has exceeded expectations.
- Contract rates for DRAM and NAND are rising sharply, with some agreements seeing triple-digit growth.
- Micron’s HBM production capacity for 2026 is reportedly fully booked, with orders now reaching into 2027.
- Market analysts project that EPS will climb by over 460% and revenue will more than double for Q2 FY26.
- Micron led growth factor rankings among S&P 500 technology stocks, earning an A+ grade alongside Broadcom.
Micron Technology (MU) is approaching its March 18 earnings announcement supported by a series of analyst upgrades, higher price targets, and rising memory costs — a trend the market has clearly embraced.
Micron Technology, Inc., MU
The company’s stock rose 9.45% over the last week, with an additional 1.4% increase in premarket trading this Friday after Wedbush Securities raised its price target from $320 to $500. Analyst Matt Bryson maintained an Outperform rating, noting that pricing has “advanced significantly beyond expectations.”
Bryson pointed out that while Micron’s own guidance for the second fiscal quarter suggested a roughly 30% rise in average selling prices, the actual results could be stronger. In January, DRAM and NAND contract pricing appeared to indicate gains of 50% or more for the first calendar quarter of 2026, with some deals reflecting triple-digit spikes.
While the memory market typically experiences a slowdown following the Chinese New Year, Bryson noted that this cycle has shown no such trend. “Instead, we have observed evidence of rising requirements and even more constrained supply dynamics,” he stated.
Bryson further mentioned that with both earnings projections and price targets climbing, and Micron still trading below its historical peak earnings multiples, there is no reason to alter a positive stance on the stock.
Analyst Projections Continue to Rise
Wedbush is not the only firm raising its outlook; Citi, Susquehanna, and Aletheia have also increased their targets recently. Aletheia set a Street-high target of $650, predicting that Micron could generate between $150 and $200 billion in cash flow during FY26 and FY27, potentially becoming one of the world’s largest semiconductor suppliers.
The Wall Street consensus leading into the earnings report is very positive. EPS is forecast to jump more than 460% year-over-year, while revenue is expected to more than double. According to several analysts, gross margins may reach record-breaking levels.
While one high-profile analyst has expressed caution regarding valuation following the stock’s significant rally over the past year, the general sentiment on the Street remains bullish, with a Strong Buy consensus rating.
HBM Capacity Booked Through 2027
High-bandwidth memory (HBM) is central to the bullish thesis. As a critical component for AI accelerators, Micron’s HBM capacity for 2026 is reportedly already sold out, with demand extending into 2027.
This level of visibility helps reduce the cyclical volatility that has historically impacted memory stocks. It also suggests that pricing power is likely to remain robust for a longer period than in previous cycles.
Separately, a growth factor assessment of S&P 500 technology companies placed Micron at the top of the list, earning an A+ grade alongside Broadcom (AVGO). AI-related firms such as Palantir (PLTR) and AMD followed with A grades, while Nvidia (NVDA) received an A-. Conversely, Apple (AAPL) and Cisco (CSCO) both were given D- grades.
Micron is scheduled to report its Q2 FY26 financial results on March 18.
