TLDR
- Micron stock rose 3.3% Tuesday to $980.58, adding to a 9.9% gain the previous session, as investors bought the dip following last week’s AI selloff.
- The selloff was triggered by so-so revenue guidance from Broadcom, which sent memory-chip names sharply lower.
- UBS analyst Nicolas Gaudois called the drop a buying “opportunity,” maintaining a Buy rating and a $1,625 price target.
- Goldman Sachs raised its 12-month price target on Micron to $900 from $400, lifting revenue and EPS estimates by 28% and 36% respectively, while keeping a Neutral rating.
- Goldman expects Micron to beat Street revenue estimates by roughly 9% when it reports fiscal Q3 later this month, forecasting $37.6B in revenue vs. consensus of $34.4B.
Micron stock is fighting back. After slumping 13% last Friday — its worst session since April 2025 — MU climbed 3.3% to $980.58 in early Tuesday trading, building on a 9.9% surge the day before.
The catalyst for the drop was Broadcom’s quarterly results last week, which included weaker-than-expected revenue guidance. That was enough to spook investors and trigger a broad AI trade selloff, pulling memory-chip names down hard.
But the bounce has been just as sharp. Micron is now trading roughly 10% below where it closed last Wednesday, before the Broadcom-driven sell-off hit.
The stock has been on a remarkable run in 2026. MU is up 233% year-to-date, fueled by booming demand for memory chips tied to AI infrastructure build-outs.
UBS analyst Nicolas Gaudois didn’t waste time calling the dip. In a note published Monday, he described the selloff as an “opportunity” for investors, pointing to continued strength in demand rather than any fundamental deterioration.
“Our checks point to continuing upside in demand, not downside, which is likely to persist on agentic AI demand,” Gaudois wrote. He rates MU at Buy with a price target of $1,625.
His top sector pick is Samsung Electronics, with SK Hynix, Kioxia, and Nanya Technology also on his list.
Goldman Raises Price Target to $900
Goldman Sachs came out with its own bullish update Tuesday, raising its 12-month price target on Micron to $900 from $400. The bank also lifted its revenue and non-GAAP EPS estimates by an average of 28% and 36% for 2026 and 2027, citing stronger industry pricing and demand.
Goldman kept its Neutral rating on the stock despite the upgrades.
The bank’s analyst team, led by James Schneider, expects Micron to beat Street revenue estimates by around 9% when it reports fiscal Q3 results later this month. Goldman is forecasting revenue of $37.6 billion, gross margin of 83.4%, and EPS of $22.07, versus consensus estimates of $34.4 billion, 81.9%, and $19.74.
For the August quarter, Goldman’s revenue forecast of $48.8 billion sits well above the Street consensus of $40.4 billion.
What Investors Will Be Watching
Goldman flagged three key items that could move the stock when Micron reports: details on the scope and pricing of Strategic Customer Agreements (SCAs), commentary on DRAM pricing sustainability, and updates on Micron’s HBM roadmap — particularly whether it can gain ground with its next-generation HBM4 product.
The bank also noted that investors expect Micron to hold or grow its roughly 20% slice of the high-bandwidth memory market.
Goldman’s full-year 2026 revenue and EPS estimates now sit 30% and 36% above Street consensus, underscoring how sharply its view diverges from the broader analyst pack.
Goldman expects tight supply and demand conditions to continue through 2027, which it sees driving higher pricing and margins across the memory industry.
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