Micron’s Explosive Growth Meets Wall Street’s Highest Target Yet as Supply Tightens Into 2027

Micron delivered a 756% leap in earnings per share to $12.07 in its fiscal second quarter, yet the stock ended Monday at $681.54, down nearly 6% on heavy volume. That contradiction – between operational firepower and market skepticism – sets the stage for the company’s appearance at the J.P. Morgan Global Technology, Media and Communications Conference in Boston. Investors want to know whether the AI-driven memory boom can sustain its momentum without tripping over cyclical fears or geopolitical landmines.

Analysts are not waiting for an answer. Melius Research nearly doubled its price target to $1,100 from $700, labeling Micron a “bottleneck stock” that stands to gain from structural shortages in semiconductor capacity. Mizuho followed with an increase to $800 from $740, maintaining an “Outperform” rating. Both firms see DRAM and NAND pricing holding firm deep into 2027, underpinned by AI data centers, HBM memory, and enterprise SSDs. Mizuho also points to a new “High Bandwidth Flash” product that could further tighten NAND supply in two years.

The supply picture received an unexpected boost – or averted blow – from South Korea. Samsung Electronics and its union reached a tentative agreement hours before a planned 18-day strike that would have disrupted production at the memory giant. Samsung controls roughly 40% of the global DRAM market and 30% of NAND flash. TrendForce had estimated that even a partial walkout could take 3% to 4% of worldwide DRAM output offline, accelerating order shifts to competitors like Micron and SK Hynix. The deal still requires ratification by 48,000 union members between May 22 and 27, so the risk has not entirely evaporated.

Should investors sell immediately? Or is it worth buying Micron?

Regardless of the Samsung drama, the fundamental story for Micron is one of sold-out capacity. Analysts note that the three largest memory makers have essentially no spare production slots left for 2026, and early customers are already negotiating contracts for 2027. Mizuho projects Micron’s revenue will grow 66% in fiscal 2027 and earnings per share will surge 80% year-over-year. The company’s own guidance for the current quarter calls for $33.5 billion in revenue – a 260% jump – and $18.90 in earnings per share.

China remains the sensitive undercurrent. Micron generated about $3.4 billion in revenue from the country last year, roughly 12% of total sales. The company has exited the domestic Chinese data center business but continues to serve Chinese clients with data centers abroad. Meanwhile, capital expenditures are slated to rise to $20 billion in fiscal 2026, up from an earlier estimate of $18 billion, as Micron secures capacity for next-generation HBM and advanced DRAM fabrication.

The next major milestone is the fiscal third-quarter earnings report due on June 24. Wall Street expects earnings of $19.15 per share, up from $1.91 a year earlier, on revenue of $33.51 billion. The conference in Boston gives management a chance to address the questions that drove the recent pullback: whether HBM capacity can remain fully utilized, how DRAM pricing will evolve, and how the company plans to navigate its exposure to China. For now, the stock trades around €619 in Frankfurt – more than seven times its 52-week low – and has added over 130% since the start of the year. The market may be testing the valuation, but the supply constraints supporting it show no signs of easing.