TLDR
- Micron briefly crossed a $1 trillion market cap on May 26 after UBS raised its price target to $1,625 — the highest among 46 analysts covering the stock.
- MU stock jumped 17.4% on the day, and is up more than 220% year-to-date and over 830% in the past 12 months.
- Fiscal Q2 revenue nearly tripled to $23.86 billion, with adjusted EPS of $12.20 beating the $9.19 analyst estimate.
- Micron’s 2026 HBM (high-bandwidth memory) supply is already sold out, and next-gen HBM4 chips are in production for Nvidia’s Vera Rubin platform.
- Wall Street consensus is a “Strong Buy,” with analysts citing tight AI memory supply that could persist through 2027.
Micron crossed a milestone that few saw coming when it hit a $1 trillion market cap on May 26. The stock jumped 17.4% to $881.60, briefly touching a 19.3% intraday gain, after UBS nearly tripled its price target from $535 to $1,625.
That is the highest target among the 46 firms covering the stock.
The move caps what has been a stunning run. MU is up more than 220% year-to-date and has gained over 830% in the past 12 months, powered by a combination of strong earnings, tight supply, and growing AI-driven demand for memory chips.
The Numbers Behind the Rally
Micron’s fiscal Q2 results were the kind of print that rewrites a stock’s story. Revenue nearly tripled year-over-year to $23.86 billion, up from $8.05 billion. Net income came in at $13.79 billion, or $12.07 per share, compared with $1.58 billion a year earlier.
Adjusted EPS of $12.20 cleared the analyst consensus of $9.19 by a wide margin. Gross margin hit approximately 75%, showing how much pricing power Micron has built up in this cycle.
Free cash flow came in at $6.9 billion on an adjusted basis. Micron ended the quarter with $16.7 billion in cash and marketable investments.
For Q3, management guided revenue to $33.5 billion — well above the $24.29 billion Wall Street was expecting at the time — and projected adjusted EPS of $19.15.
CEO Sanjay Mehrotra said the company “set new records across revenue, gross margin, EPS, and free cash flow” in Q2, and expected further records in Q3.
Why Analysts Are Bullish
Mizuho met with Micron executives on May 26 and reaffirmed an Outperform rating, while maintaining a $800 price target. Analyst Vijay Rakesh said demand for HBM and DRAM is being driven by AI workloads, and that supply for key customers remains 30% to 50% below demand.
Mizuho added that this supply-demand gap could persist beyond 2026, and flagged that HBM4 and HBM4e pricing could rise between 70% and 100% in 2027 following a pricing reset in Q4 2025.
Micron’s 2026 HBM supply is already fully sold out. HBM4 production is underway for Nvidia’s Vera Rubin platform, which helps explain why analysts think pricing power can hold.
Beyond Mizuho, D.A. Davidson initiated coverage with a Buy and a $1,500 target, while Morgan Stanley and KeyBanc have also been constructive on the name. The Street consensus is a “Strong Buy,” with the average target of $1,625 implying around 76% upside from recent levels.
To back up the demand story, Micron recently bought Powerchip’s Tongluo fabrication site in Taiwan for $1.8 billion and plans to build a second facility there. Management also raised fiscal 2026 capital spending guidance to above $25 billion.
Not every analyst ignores the risks. Some flag that new capacity could put pressure on memory prices in 2027 and 2028, and Micron remains a cyclical business even if the AI tailwind has meaningfully changed its profile.
Micron currently trades at around 8.4x forward earnings, compared with 22x for the S&P 500 and 26x for the Nasdaq 100.
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