Micron's earnings report dazzles, but stock price remains "unmoved"! Wall Street remains optimistic, with the highest target price set at $1,625

Micron Technology’s latest quarterly report has exceeded Wall Street expectations across the board, but after a substantial prior rally, its share price showed a muted response in pre-market trading. Nevertheless, Wall Street investment banks remain broadly optimistic about the chipmaker’s long-term profitability amid the wave of artificial intelligence.

Financial results show that Micron Technology’s fourth fiscal quarter revenue reached $54.23 billion, nearly four times the same period last year, with adjusted earnings per share of $33.42, both beating market consensus. At the same time, the company provided a robust outlook for the first fiscal quarter, guiding revenue of around $61.5 billion and earnings per share of $38.15.

Despite strong results and guidance, Micron Technology’s share price showed little movement in pre-market trading after the report was released. This muted reaction contrasts sharply with its strong performance earlier this year—driven by surging demand for memory chips fueled by accelerated AI application rollout, Micron’s stock price has skyrocketed 237% year-to-date through 2026.

In the face of a short-term halt in share price appreciation, several top Wall Street investment banks have swiftly reiterated their bullish ratings on Micron Technology. Analysts generally believe that the increase in long-term strategic customer agreements and the structurally tight supply-demand dynamics in the memory chip market will provide strong upside potential for the stock.

AI Demand Fuels Robust Long-Term Fundamentals

Since 2026, Micron’s share price has climbed sharply, driven by soaring memory demand as AI adoption accelerates.Deutsche Bank believes that this strong market demand is expected to further intensify in the near future, pushing Micron’s share price even higher.

Deutsche Bank analyst Melissa Weathers noted in a report to clients that, for the foreseeable future, the overall fundamentals of the storage industry remain structurally very solid. She stated that while the narrative surrounding the memory sector may continue to fluctuate in the current AI-driven environment, Micron’s unique growth drivers and strong supply-demand backdrop support its cross-cycle profitability far exceeding historical trends.

On this basis, Deutsche Bank maintains a “Buy” rating on Micron and issued a $1,550 price target, representing an upside of nearly 46% from Wednesday’s close.

Strategic Customer Agreements Enhance Earnings Visibility

Wall Street institutions have widely observed substantial progress by Micron in locking in long-term customer demand and pricing power.

Bank of America pointed out that as high-bandwidth memory pricing agreements are renewed, and Strategic Customer Agreements (SCAs) expanded from 16 in the last quarter to 26, management’s visibility into revenue and gross margin expansion for each quarter of fiscal 2027 is significantly improving.The bank maintains a “Buy” rating and a $1,550 price target, and expects memory chips to capture even more value in 2027 and beyond.

Goldman Sachs added that Micron has signed 10 additional long-term agreements, collectively accounting for about 35% of anticipated fiscal 2030 revenue, with approximately 75% containing structured pricing frameworks. Goldman believes these agreements are a positive for the stock, helping to lift the valuation multiples investors are willing to pay for “peak” earnings.

J.P. Morgan also emphasized that the expanded coverage of strategic customer agreements, upward revisions to supply-demand tightness expectations, and a clear capital return strategy collectively underpin a strong profit outlook for Micron over the coming years.

Wall Street Consensus Bullish, Highest Price Target at $1,625

Although Goldman Sachs cautions that lofty expectations and minor downward pressures on gross margin may partially offset the share price, major Wall Street investment banks continue to maintain positive ratings on Micron.Among them, UBS set the highest price target on Wall Street at $1,625, reiterating a “Buy” rating.

UBS expects the market will ultimately assign higher price-to-earnings multiples to Micron, and forecasts that its gross margin floor will not fall below 65-70%. Given the critical role of storage in the AI era, a higher average level of capital returns throughout the cycle will provide firm support for the stock price.

Citi assigned Micron a $1,300 price target. The firm emphasized that the main constraint for the industry right now is cleanroom space. Micron’s fiscal 2027 capital expenditure plan is largely allocated to cleanrooms expected to ramp up by late 2028 and beyond, reflecting confidence in long-term demand trends.

Additionally, Morgan Stanley gave an “Overweight” rating and a $1,200 price target, believing that although sequential improvement has slowed, the company’s business momentum remains strong, and the durability of this cycle is still underestimated by some market participants.