Micron shares continued their upward trend, rising 2.4% in premarket trading on Tuesday after closing 11% higher at $1,087.99 on Monday, which set a new record. Analysts at TD Cowen and Cantor Fitzgerald have both increased their price targets to $1,500, suggesting the stock could climb nearly 40% from its current price. Below, we look at the factors behind this momentum and what to expect from Micron’s fiscal third-quarter earnings report on June 24.
Micron’s stock has surged over 800% in the past year as investors reconsider the traditionally low price-to-earnings ratios for memory chip companies, which have often faced boom-and-bust cycles. Strong demand for high-bandwidth memory in AI infrastructure and more long-term supply agreements are changing how the industry is viewed. Many analysts now believe this earnings boom could last longer than previous cycles.
Melius Research has set a more cautious price target of $1,100 but is still positive about Micron’s long-term outlook. According to the firm’s analyst, Micron’s gross margins, now around 80%, could stay high for longer than many expect. The analyst also predicts the company could earn up to $150 per share in 2027. Planned share buybacks starting in 2027 may give the stock another boost beyond earnings growth.
Micron will announce its fiscal third-quarter earnings after the market closes on June 24. Investors will be watching to see if strong demand from AI continues to support the company’s high margins and revenue growth, which have driven the stock to new highs.
