Shares of chipmaker Micron surged to an all-time high on Monday, rising over 300% year-to-date amid a global memory chip shortage. Despite broader industry concerns about peaking valuations, Wall Street remains bullish, anticipating Wednesday’s earnings report to reflect strong growth. Analysts predict earnings-per-share (EPS) exceeding the FactSet consensus of $20.42, with some estimates reaching $22.17 based on informal buy-side feedback.
Micron’s alignment with artificial intelligence (AI) demand trends has been a key growth driver. The company highlighted AI inference—a critical component of query response systems—as increasingly contributing to chip demand, with analyst Mark Li of Bernstein noting this trend is already influencing performance, not merely future potential. This positions Micron as a leader in both DRAM and NAND chip markets amid tightening supply.
Analysts from multiple banks raised their price targets post-earnings, reflecting confidence in Micron’s trajectory. Needham’s N. Quinn Bolton upped his 12-month target to $1,550 (from $500), citing third-quarter EPS estimates of $20.97. Bernstein’s Mark Li increased his goal to $1,300, projecting 2026 EPS of $67.39. Morgan Stanley’s base case stands at $1,050, though they flag that limited customer deal disclosures could pressure the stock. Their “bull case” forecasts $1,650, while bearish scenarios cite risks like restricted pricing sustainability.
Goldman Sachs, while doubling down on earnings optimism ($22.07 EPS estimate), stressed the need for clearer disclosures on strategic customer agreements and pricing guarantees. Analysts warned that uncertainty around these factors could temper near-term sentiment, even as the broader market anticipates Micron’s role in a multiyear DRAM shortage dominating performance.
The stock’s resilience amid industry volatility underscores its centrality in addressing AI and memory chip scarcity—a trend likely to sustain its upward trajectory.
