$Micron Technology (MU.US)$The company has once again received resounding endorsement from Wall Street, with bullish research reports pouring in. On Monday, TD Cowen analyst Krish Sankar sharply raised his price target from $660 to $1,500. Investors are digesting the thesis of 'upside DRAM demand' and an 'extended pricing power cycle,' and, unsurprisingly, the stock surged in response.
Sankar ranks 13th among 12,304 Wall Street analysts. This latest upgrade represents an increase of USD 840, following a cumulative gain of 843% in the stock over the past year. The firm maintained its 'Buy' rating, stating in its report that the revised price target is based on its forecast of calendar-year 2027 earnings per share (EPS) reaching USD 150.
As of the close on June 16, the 47-year-old memory giant traded at $1,020.76, having hit an intraday high of $1,110.44; as of this writing, the stock was up 4.67% in after-hours trading at $1,068.39. Year-to-date, the stock has risen 281.36%, ranking$S&P 500 Index (.SPX.US)$third among index constituents, trailing only$SanDisk (SNDK.US)$(811%) and$Western Digital (WDC.US)$(308%)。
TD Cowen’s call for a USD 1,500 price target reflects not only optimism about an upswing in the memory cycle but also a structural thesis—centered on the strategic value of memory in the AI era and when this value will materialize in financial statements.
Price Target Rationale: Repriced Timing Cycle + Structural Demand Surge
This price target revision rests on two core arguments, distinguishing it from conventional memory-cycle upgrade reports.
First, the pricing timeline has been revised. The firm previously anticipated some digestion period in the first half of calendar year 2027, but that view has now changed. The report notes that strong CPU demand has led buyers to expect robust pricing to persist through the second half of calendar year 2027. Sankar now expects server DRAM prices to peak around the third quarter of calendar year 2026—a typical DRAM cycle often subjects memory stocks to extreme booms and busts, with significant price volatility.
Second—and more critically—TD Cowen explicitly states that memory’s role in AI is structural, not cyclical. Even accounting for adjustments in SOCAMM specifications, DRAM content per gigawatt (GW) of power consumption continues to rise. This implies that AI infrastructure build-out will drive sustained increases in memory intensity, avoiding the mean reversion typical of traditional server cycles. The firm’s EPS forecast of USD 150 for calendar year 2027 is grounded precisely in this structural demand now embedded in Micron’s earnings base.
Other firms have followed suit. RBC Capital raised its price target to USD 1,200, citing a DRAM upcycle now extending into its 12th quarter, with both pricing and shipments strengthening. Aletheia Capital lifted its target to USD 1,600 and shifted to a valuation framework based on 2027 forward price-to-earnings multiples. Wolfe Research also increased its target to USD 1,250, expecting continued upward pricing trends for both DRAM and NAND through 2026–2027.
Q2 Earnings: Multiple Records Set, Solidifying the Bull Case
The financial cornerstone behind all upward revisions to target prices is Micron Technology’s second-quarter fiscal 2026 results (ended in March)—which set new company records across multiple metrics.
Revenue reached $23.86 billion, significantly surpassing the $8.05 billion recorded in the same period last year; GAAP net income amounted to $13.79 billion. DRAM revenue stood at $18.8 billion, surging 207% year-over-year and accounting for 79% of total revenue; NAND revenue totaled $5.0 billion, up 169% year-over-year. Free cash flow hit $6.9 billion, setting a new quarterly record. Micron achieved historic highs across key dimensions including revenue, gross margin, earnings per share, and free cash flow.
“In the AI era, memory has become a strategic asset for our customers,” said CEO Sanjay Mehrotra. He also approved a 30% increase in the quarterly dividend—a clear signal of management’s confidence in the sustainability of earnings, not merely a one-time anomaly.
Q3 Guidance: Growth Acceleration Is Remarkable; June 24 Earnings Report Will Be a Crucial Test
For its upcoming third-quarter fiscal 2026 earnings report scheduled for June 24, Micron provided guidance for revenue of $33.5 billion, a gross margin of approximately 81%, and non-GAAP earnings per share of $19.15. If realized, this would represent a sequential jump in quarterly revenue from $23.86 billion to $33.5 billion—one of the fastest revenue acceleration records ever achieved by a large semiconductor company.
Extrapolating from the Q3 guidance toward TD Cowen’s calendar-year 2027 EPS target of $150 per share, the path appears clear: sustained high-bandwidth memory (HBM) volume ramp-up, strong DRAM pricing throughout the second half of 2026, and no major disruptions to AI infrastructure spending. Under current capital expenditure commitments from hyperscale cloud providers, none of these conditions show signs of fragility.
In addition, Micron has selected Bechtel as its engineering, procurement, and construction partner for the first phase of its new manufacturing facility in Clay, New York, aimed at building domestic capacity to support commercial demand and the U.S. government’s semiconductor self-reliance priorities. Meanwhile, AI infrastructure expert Alexis Black Bjorlin, who brings board experience from$NVIDIA (NVDA.US)$, Meta,$Broadcom (AVGO.US)$and Intel, has joined Micron’s board, signaling the company is building strategic depth commensurate with its financial momentum.
The June 24 earnings report will serve as the next 'stress test.' TD Cowen’s $1,500 price target reflects confidence that memory’s role in the AI era has permanently elevated Micron’s profitability ceiling.