Micron Price Targets Shift Ahead of Earnings

Micron price targets shifted as analysts adjusted outlooks, producing mixed margin forecasts and divergent ratings that leave investors weighing competing scenarios before the company's fiscal fourth-quarter report.

Analyst Ratings and Estimates Ahead of Earnings

Analyst actions over the past 72 hours were mixed but broadly positive. Citi raised its price target to $1,300 from $1,150 and maintained a Buy rating, citing stronger-than-expected DRAM pricing and persistent undersupply in DRAM and NAND memory. Wells Fargo lowered its target to $1,400 from $1,525 but kept an Overweight rating, highlighting valuation concerns, peak earnings risks, and the pricing of long-term supply agreements. At the same time, Wells Fargo raised its fiscal 2027 and 2028 earnings outlooks while expecting favorable supply-demand conditions through 2027. UBS reiterated a Buy rating with a $1,625 target, pointing to a widening supply-demand gap.

Bank of America and UBS analysts also remained constructive, emphasizing sustained memory demand, improving pricing, and the question of whether gross margins can hold near the mid-80% range through fiscal 2027.

Pricing Assumptions, Target Dispersion, and Earnings Timing

Analysts attributed the target revisions to stronger DRAM pricing, ongoing undersupply in DRAM and NAND, and rising demand linked to artificial-intelligence development. Reported analyst targets ranged from roughly $1,100 to $2,000, with averages near $1,295 to $1,303, reflecting different analyst groups and update schedules.

Citi projections assumed blended DRAM average-selling prices would rise about 20% sequentially in the current quarter and 13% in the following one, while NAND pricing was expected to increase roughly 34% then 15%. UBS modeled fiscal fourth-quarter revenue at about $52 billion with a gross margin near 87.6%, followed by fiscal first-quarter revenue of $58 billion to $59 billion and a roughly 100-basis-point sequential gross-margin improvement.

Wells Fargo’s estimates included fiscal 2026 revenue of $132.3 billion with earnings per share (EPS) of $75.00, fiscal 2027 revenue of $261.3 billion with EPS of $166.00, and fiscal 2028 revenue of $287.8 billion with EPS of $178.00. The bank also cited a through-cycle EPS range of $75 to $90 and a through-cycle gross margin in the low-to-mid-70% range, below UBS and Bank of America’s near-term margin assumptions.

Micron’s fiscal fourth-quarter results are expected on September 30, 2026. Analysts will focus on margin guidance and disclosures about new long-term supply agreements to assess whether the AI-driven pricing environment supporting many bullish targets can be sustained.