TLDR
- Micron stock is up nearly 250% in 2026, with earnings due June 24 after market close
- DRAM and NAND chip demand remains strong, driven by AI data center buildout
- Alphabet and Nvidia both signal 2027 AI spending will rise well above 2026 levels
- RBC Capital raised its price target on MU from $525 to $1,200, keeping an Outperform rating
- Micron trades at just 16.4x forward earnings despite its massive run-up this year
Micron Technology (MU) stock is up nearly 250% in 2026, trading around $1,042 per share, and the company reports quarterly earnings on June 24. That event is drawing more attention than usual.
Micron makes DRAM and NAND memory chips — both in short supply. DRAM is used in AI computing hardware including GPUs. NAND drives long-term data storage in data centers. Demand for both has pushed prices higher, and supply hasn’t caught up.
That pricing power has driven strong revenue and earnings growth over the past year. There’s little in the current supply picture to suggest that changes before this earnings print.
Wall Street has taken notice. On June 15, RBC Capital analyst Srini Pajjuri raised his price target on MU from $525 to $1,200, maintaining an Outperform rating. That target implies more than 17% upside from current levels.
RBC’s reasoning centers on DRAM. The firm says the current upcycle has already run 12 quarters and could last another five to six more. It points to sustained capital spending, strong GenAI demand, and the growing use of inference and agentic AI applications as the key drivers.
Wolfe Research made a similar call a few days earlier. On June 11, it raised its target on MU from $550 to $1,250, also maintaining an Outperform rating.
Spending Signals From Hyperscalers
The demand story gets more concrete when you look at what Micron’s biggest customers are saying. Alphabet told investors that 2027 capex will be “significantly” higher than 2026, which is already forecast at $180–$190 billion.
Nvidia went further, telling investors that AI hyperscaler spending could top $1 trillion in 2027, up from around $650 billion this year. That’s a big number, and it points to sustained memory demand well into next year.
Micron and its competitors are working on expanding production capacity, but that new supply isn’t expected to come online until late 2027. Even then, analysts note it may be absorbed by demand rather than easing prices.
Valuation Hasn’t Run Away
One thing that might surprise investors: despite tripling this year, MU doesn’t look expensive. The stock currently trades at 16.4 times forward earnings for its fiscal year ending August 2026. On fiscal 2027 estimates, it looks even cheaper.
That’s a low multiple for a company growing at this pace, and it’s one reason analysts remain constructive heading into earnings.
Micron’s net profit margin currently sits at 41.49%, putting it among the more profitable names in the semiconductor space.
The June 24 earnings release will be the next catalyst. Investors will be watching closely for guidance on pricing trends, demand signals from hyperscaler customers, and any update on production capacity timelines.
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