TLDR
- Micron reports fiscal fourth-quarter earnings after markets close Wednesday
- Analyst Gil Luria reiterates a $2,000 price target, implying about 100% upside
- Options pricing points to a possible 7% swing in the stock by week’s end
- Revenue is expected to hit $50.95 billion, up 350% year-over-year
- Adjusted earnings are projected at $31.63 per share, more than 10 times last year’s figure
Micron Technology (MU) stock fell 3% on Monday to close at $1,053.98. It then climbed about 2% in pre-market trading Tuesday.
The move comes two days before Micron reports fiscal fourth-quarter earnings after the market closes Wednesday. Traders are watching closely for signs of how long the AI memory boom can last.
Options pricing suggests the stock could swing as much as 7% in either direction by the end of the week. That range could push the price toward $1,127, near its June record, or pull it below $982.
Micron stock has nearly quadrupled since January. The gains come from surging demand for memory chips used in AI servers.
D.A. Davidson analyst Gil Luria reiterated his $2,000 price target on Monday. That sits well above the average Wall Street target of $1,520, according to Yahoo Finance data.
Luria’s target implies roughly 100% upside from current levels. He argues memory is essential for training and running AI models.
“More memory means better models, more memory means faster inference, and more memory means longer context windows,” Luria said. He pointed to strong demand signals from major tech buyers.
Luria also cited Meta’s Muse product as a recent example. He said the interface advancement has pushed more consumers toward new AI use cases.
Why the Memory Market Is So Tight
High-bandwidth memory and advanced DRAM chips used in AI servers remain in short supply. Demand from AI infrastructure builders has outpaced what chipmakers can produce.
Micron, SK Hynix, and Samsung Electronics have largely sold out their premium AI memory capacity through much of 2026. Customers include Nvidia, Microsoft, Amazon, and Meta.
Micron’s HBM3E and HBM4 chips are seeing strong orders. Those chips work alongside Nvidia and AMD graphics accelerators inside AI servers.
The supply crunch has pushed memory prices higher. That has handed producers more pricing power after years of weaker industry conditions.
JPMorgan analyst Jay Kwon said the memory total addressable market is growing from both pricing and volume gains. He expects the supply and demand gap to persist for two more years.
What Analysts Expect From Wednesday’s Report
Micron is expected to report $50.95 billion in revenue for its fiscal fourth quarter. That would mark 350% growth from a year earlier, according to Visible Alpha estimates.
Adjusted earnings are projected at $31.63 per share. That figure is more than 10 times what Micron reported in the same period last year.
UBS analysts recently said the gap between memory supply and demand will keep widening into 2027. They advised investors to focus on the durability of demand rather than short-term price swings.
Luria compared Micron’s valuation to chipmakers AMD and Intel. He noted both trade at 40 to 60 times earnings, while Micron trades at around 7 times earnings.
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