Micron Technology’s stock experienced a significant rally, climbing over 10% in a single session to establish a fresh 52-week peak at $315.42. This upward movement was catalyzed by a substantial price target revision from Bernstein, where analysts raised their projection from $270 to $330 per share. According to Bernstein’s Mark Li, the adjustment reflects sustained robust demand for High-Bandwidth Memory (HBM) used in artificial intelligence applications, coupled with favorable pricing trends in the DRAM market.
Strong Quarterly Results Underpin Confidence
The current market enthusiasm is firmly rooted in Micron’s exceptional financial report for its first fiscal quarter of 2026. The company posted revenue of $13.64 billion, a 57% year-over-year increase that handily surpassed the $12.62 billion consensus estimate. Adjusted earnings per share nearly tripled to $4.78, dramatically exceeding analyst forecasts of $3.77.
Key profitability metrics showed remarkable improvement. The gross margin expanded to approximately 57%, up from 25% previously. Furthermore, operating cash flow more than doubled, reaching $8.41 billion. CEO Sanjay Mehrotra highlighted that the total addressable market for HBM is now anticipated to hit $100 billion by 2028—two years ahead of prior expectations. This market was valued at roughly $35 billion in 2025.
Analyst Sentiment Turns Increasingly Bullish
Bernstein’s updated assessment joins a chorus of positive analyst commentary following Micron’s mid-December earnings release. Wolfe Research elevated its price target to $350. Bank of America upgraded the stock from “Neutral” to “Buy,” simultaneously raising its target from $250 to $300. Piper Sandler and Citigroup also issued upward revisions, with Citigroup establishing a new fair value estimate of $330.
Should investors sell immediately? Or is it worth buying Micron?
The consensus rating among 37 covering analysts remains a “Buy.” Recent target increases have pushed the average price target significantly higher from its previous level of $283. Trading activity intensified alongside the price surge, with volume hitting 41.9 million shares on Friday—about 62% above the three-month average.
Guidance Signals Continued Momentum
For the ongoing second fiscal quarter, Micron has provided an outlook that exceeds market expectations. The company forecasts revenue of $18.7 billion, representing sequential growth of 37%. It anticipates its gross margin will rise to 68%, with adjusted earnings per share climbing to $8.42.
Management noted that its entire HBM production capacity for calendar year 2026, including the next-generation HBM4, is already sold out. Bernstein’s Mark Li projects DRAM prices will increase between 20% and 25% in the second quarter. Micron’s own guidance suggests the company may possess even greater pricing power.
Investors are likely to focus on upcoming developments in HBM customer acquisitions and further DRAM market pricing trends ahead of the next quarterly report, expected in mid-March.
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