TLDR
- Micron hit a 52-week high of $365.81 on January 16, 2026, after rallying 231% over 12 months
- Q1 revenue climbed 57% year-over-year to $13.64 billion with EPS of $4.78 beating estimates by 27%
- Barclays upgraded its price target to $450 while Wells Fargo raised its target to $410
- High-bandwidth memory capacity is completely sold out through 2026 with locked pricing agreements
- The company is acquiring a Taiwan fab for $1.8 billion and building a $100 billion New York facility
Micron stock jumped 7% to $362.75 after Barclays raised its 12-month price target to $450 from $275. Wells Fargo followed with a $410 target on the same day.
The upgrades came on the heels of first-quarter results that crushed expectations. Revenue hit $13.64 billion, up 57% from the prior year. Non-GAAP earnings per share reached $4.78, beating consensus forecasts by 27%.
Second-quarter guidance pushed the bullish case even further. Management projected revenue around $18.7 billion. Gross margins are expected to expand to roughly 68%, an 11-percentage-point sequential increase.
The company disclosed that high-bandwidth memory production is sold out through 2026. Multi-year pricing agreements are already locked in place.
Expansion Plans Across Two Continents
Micron signed a letter of intent to acquire a fabrication plant from Taiwan’s Powerchip Semiconductor for $1.8 billion. The transaction is expected to close in the second half of 2026.
DRAM production at the Taiwan site will increase gradually. Major wafer output should begin in late 2027. The facility sits near Micron’s current Taiwan operations, improving operational efficiency.
The company also broke ground on a $100 billion semiconductor manufacturing plant in upstate New York. Located in Onondaga County near Syracuse, the facility will be the largest semiconductor plant in the United States. Full operation is scheduled for 2030 with 50,000 jobs expected to be created.
Director Teyin Liu purchased 23,200 common shares at approximately $337 per share on January 13-14. The insider transaction signals confidence from company leadership.
Wall Street Piles Into Memory Trade
KeyBanc, Cantor Fitzgerald, and RBC Capital all raised price targets to the $425-$450 range within 24 hours. The coordinated upgrades reflect conviction in sustained supply constraints.
SK Hynix, which controls 60% of global HBM shipments, warned that DRAM shortages could extend through 2028. Even with Micron’s planned $20 billion in fiscal 2026 capex, new fab capacity won’t meaningfully arrive before 2027-2028.
TipRanks shows a Strong Buy consensus rating based on 25 Buy ratings and one Hold. The average price target sits at $363.77, suggesting shares are trading near analyst consensus.
Micron currently trades at a forward P/E of 12 times. That compares to its five-year average of 20 times. Wall Street consensus averages $360-$379, well below Barclays’ $450 call.
The $450 target assumes continued supply tightness and gross margins of 55-60% through 2027. The lower consensus range assumes more conservative margin normalization.
Analysts expect 100% EPS growth for fiscal 2026. AI-driven demand from data centers and hyperscalers has created memory chip shortages and driven up pricing.
The stock has surged 231% over the past year. Strong demand for HBM and DRAM chips fueled by AI applications drove the rally. Consistent quarterly earnings beats and improving profitability added fuel to the move.
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