Micron Stock Rises. Wall Street Is Feeling Good About Next Week’s Earnings.

Micron Technology could report higher-than-expected revenue in its fiscal first quarter due to ‘unprecedented’ increases in memory pricing, Citi Research said. (Photograph by Tomohiro Ohsumi/Bloomberg)

Key Points

• Citi Research raised Micron’s price target to $300 from $275, forecasting $14 billion in revenue due to DRAM pricing increases.
• Deutsche Bank increased its fiscal-year revenue estimate to $59.66 billion and earnings to $20.63 per share for Micron.
• Memory pricing has risen significantly, with non-high bandwidth memory DRAM price increases being a key driver for 2026 earnings.

Micron Technology is set to report fiscal first-quarter earnings next week, and many on Wall Street have high expectations for the chip maker that has reaped the benefits of the artificial-intelligence boom.

One of those bulls is Citi Research analyst Christopher Danely, who lifted his price target on Micron shares to $300 from $275 and reiterated a Buy rating in a note published Tuesday.

Danely expects Micron to report quarterly revenue of $14 billion, handily above the $12.59 billion Wall Street is anticipating, “due to unprecedented increases in DRAM pricing.”

DRAM, or dynamic random access memory, allows a processor to store and rapidly access the data and program instructions it is actively using. Fueled by demand from the AI sector, memory pricing has increased rapidly over the past year.

“We believe the AI food chain is negotiating long-term DRAM contracts which will result in large capital infusions to DRAM companies such as Micron to help pay for new fabs,” Danely wrote.

His earnings estimates are also higher than the Street’s. Danely forecasts earnings of $4.07 a share, above the $3.52 consensus estimate, citing higher sales and gross margins.

Deutsche Bank hiked its fiscal-year estimates Tuesday ahead of next Wednesday’s report. The firm is calling $59.66 billion in revenue, up from $53.2 billion, and earnings of $20.63 a share, compared with prior calls for $16.41.

Deutsche Bank analyst Melissa Weathers reiterated a Buy rating on Micron and raised her price target to $280 from $200. While price increases of non-high bandwidth memory DRAM “are one of the most important drivers of earnings power in 2026,” the magnitude of those price increases is still in question, Weathers noted.

“The higher silicon intensity of HBM has absorbed a significant portion of wafer starts, causing supply tightness across existing lines,” Weathers continued. She noted that industry sources had indicated pricing to have “increased dramatically in recent weeks,” into the double-digit range versus summer levels.

Micron stock ticked 0.8% higher to $254.52 on Wednesday. The benchmark S&P 500 index was up 0.6%.

The chip maker appears to gaining more cheerleaders. HSBC initiated coverage on Micron stock with a Buy rating and $330 price target, dubbing it a “key beneficiary of the memory supercycle.” In the firm’s view, the market is failing to appreciate the impact of the DRAM rally, which will spark future gains.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com