TLDR
- MU stock dropped ~8% Tuesday on U.S.-Iran war concerns, then recovered ~2% Wednesday
- Q2 FY26 earnings due March 18; Wall Street expects EPS to surge 447% YoY to $8.54
- Stifel raised price target to $550, citing “software-like” gross margins by mid-2026
- UBS boosted target to $475, forecasting DRAM shortages through 2027–2028
- Micron launched a new 256GB LPDRAM module — the highest-capacity CPU-attached module available
Micron Technology stock took a hit Tuesday, falling roughly 8% as broader concerns around the U.S.-Iran conflict rattled markets. Korean memory rivals Samsung and SK Hynix also fell on fears that rising energy prices could squeeze chipmakers.
MU bounced back about 2% on Wednesday.
Over the past month, the stock is down 9%. But zoom out, and it’s still up 319% — a number that explains why analysts aren’t running for the exits.
The next big test is Q2 FY26 earnings on March 18. Wall Street is expecting a blockbuster quarter — EPS of $8.54, a 447% jump year-over-year, with revenue projected to climb more than 134% to $18.88 billion.
Those aren’t modest expectations. But analysts who track the memory market say the numbers are justified — and may even be conservative.
Stifel’s Brian Chin, a five-star analyst, raised his price target to $550 from $360 and kept his Buy rating. His reasoning: memory pricing has surpassed even his own forecasts.
“Memory pricing is hitting levels we did not envision,” Chin said, pointing to a widening gap between supply and demand that shows no sign of closing soon.
Chin’s supply checks show memory capacity is essentially fixed for the next 12 months. He expects Micron’s gross margins to reach “software-like” levels — in the mid-to-upper 70% range — by mid-year, and stay there through the end of 2026.
He also argued that consensus estimates are still too low and will need to be revised upward over coming quarters.
Analyst Targets Keep Moving Higher
UBS analyst Timothy Arcuri is also bullish, bumping his price target to $475 from $450. He pointed to strong pricing dynamics across both core DRAM and NAND, based on the latest industry checks.
Arcuri sees DRAM shortages persisting through 2027 and into 2028 — a longer runway than many had expected.
With 26 Buy ratings and just two Hold recommendations heading into earnings, MU carries a Strong Buy consensus on Wall Street. The average price target sits at $417.81, implying roughly 10% upside from current levels.
New 256GB Module Targets AI Data Centers
Away from the earnings build-up, Micron also made a product announcement this week. The company has started shipping customer samples of its new 256GB SOCAMM2 LPDRAM module.
The company says it’s the highest-capacity CPU-attached LPDRAM module currently on the market.
It uses what Micron calls the industry’s first monolithic 32Gb LPDDR5X design, aimed at delivering higher memory density with better power efficiency for AI and high-performance computing workloads.
The new module offers one-third more capacity than the previous top configuration of 192GB SOCAMM2. It also enables up to 2TB of LPDRAM per 8-channel CPU — meaning larger context windows and more complex AI inference tasks.
Power consumption is roughly one-third that of equivalent RDIMM solutions, which could help hyperscalers cut energy costs and improve server efficiency.
Micron said the launch reflects its focus on packaging and memory technology to meet growing demand for high-capacity, energy-efficient solutions in next-generation AI data centers.
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