In the last 12 months, Micron (MU) stock has doubled investors’ money three times, resulting in an 8x return. If recent analyst commentary is anything to go by, the stock could double once more. That’s what analysts at UBS are predicting with their price target of $1,625, which offered more than 100% upside at the time the call was given. The stock isn’t slowing down, and in the first half of the trading day, it registered a 20% gain.
As the semiconductor supply chain faces increasing scrutiny, investors are getting a much clearer picture regarding future demand and price visibility. UBS’ upward target price revision comes on the back of a similar development. The firm has noticed that the trend of long-term memory supply agreements points to increasing demand at least till 2029, resulting in healthy earnings and cash flows for the company.
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Micron also just announced that its Manassas, Virginia, facility has started producing the 1-alpha DRAM chips, which are the most advanced memory chips ever produced in the country. This is also in line with President Donald Trump’s vision of boosting semiconductor manufacturing into the US.
About Micron Technology Stock
Micron Technology is a developer, manufacturer, designer, and seller of memory and storage solutions. The company operates in the Core Data Center Business Unit, Automotive & Embedded Business Unit, Cloud Memory Business Unit, and Mobile and Client Business Unit segments. It offers a wide range of products, including memory products, technology leadership products, and storage products.
The stock posted a massive gain of around 909% over the past year. This exceptional performance was mainly driven by a strong rally that began toward the end of 2025. In contrast, the Roundhill Memory ETF (DRAM) more than doubled during the same period. This suggests that while the broader industry also performed strongly, the stock significantly outperformed the sector and generated gains nearly 7 times higher than the ETF.
Micron Technology Delivers Earnings
The company posted its second-quarter FY26 results in March, reporting total revenue of $23.9 billion. This represents a 75% sequential and 196% year-over-year increase. Despite the impressive performance, the stock opened down the next day. The announcement marked its fourth consecutive quarter of record revenue. The sequential increase of $10.2 billion in revenue was the largest in the company’s history. Non-GAAP diluted EPS reached $12.20, reflecting 155% sequential and 682% year-over-year growth. The company ended the quarter with a record $16.7 billion in cash and investments.
For the third quarter, Micron Technology expects revenue to be around $33.5 billion, with a possible variation of $750 million. EPS is estimated at a record $19.15 per share, $0.40 above or below the estimate. Gross margin is projected to be near 81%. Margins are likely to improve, supported by lower costs, higher pricing, and a better product mix. On the industry side, supply conditions for both DRAM and NAND are projected to stay tight through 2026.
What Are Analysts Saying About Micron Technology Stock
On May 28, three financial services firms raised their price targets on the stock. D.A. Davidson, DBS Bank, and Mizuho Securities increased their targets from $800-$1,000 to $1,150-$1,500, while all three maintained “Buy” ratings. Mizuho Securities remains positive on the semiconductor sector, pointing to strong DRAM demand through 2027, stable NAND demand, and growing opportunities in high bandwidth memory.
Micron Technology is currently covered by 41 Wall Street analysts and holds a consensus “Strong Buy” rating. Based on their estimates, the mean price target stands at $673.63, which the stock has already surpassed, now trading about 44% above this level. However, the highest price target of $1,625 is still attractive and reflects an additional 67% upside from the current levels.
On the date of publication, Jabran Kundi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com