TLDR
- Micron shares advanced 3.3% Tuesday to $980.58, extending a 9.9% rally from the prior session as traders capitalized on the post-selloff rebound.
- The decline was sparked by disappointing revenue projections from Broadcom, which dragged memory chip stocks significantly lower.
- UBS analyst Nicolas Gaudois characterized the pullback as a compelling “opportunity,” reaffirming his Buy recommendation with a $1,625 target price.
- Goldman Sachs upgraded its 12-month target for Micron to $900 from $400, boosting revenue and earnings projections by 28% and 36% respectively, though maintaining a Neutral stance.
- Goldman anticipates Micron will surpass Wall Street revenue projections by approximately 9% in its upcoming fiscal Q3 report, estimating $37.6B versus the $34.4B consensus.
Micron shares are staging a comeback. Following a bruising 13% decline last Friday — marking its steepest single-day loss since April 2025 — MU advanced 3.3% to $980.58 during early Tuesday sessions, extending a robust 9.9% rebound from Monday.
The initial downturn stemmed from Broadcom’s earnings release last week, which featured disappointing forward guidance on revenues. The underwhelming outlook rattled market participants and ignited a widespread retreat from AI-related positions, hammering memory chip manufacturers particularly hard.
Yet the recovery has proven equally forceful. Micron currently trades approximately 10% beneath its closing price from last Wednesday, prior to the Broadcom-triggered market turbulence.
The stock has delivered extraordinary performance throughout 2026. MU has surged 233% year-to-date, propelled by explosive growth in memory chip requirements linked to artificial intelligence infrastructure expansion.
UBS analyst Nicolas Gaudois moved quickly to endorse the weakness. In research published Monday, he framed the downturn as a prime “opportunity” for market participants, emphasizing persistent demand strength rather than any underlying business 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 preferred sector selection is Samsung Electronics, accompanied by SK Hynix, Kioxia, and Nanya Technology among his favored names.
Goldman Elevates Price Target to $900
Goldman Sachs released its own positive revision Tuesday, elevating its 12-month target on Micron to $900 from $400. The investment bank simultaneously increased its revenue and non-GAAP earnings per share projections by averages of 28% and 36% for 2026 and 2027, pointing to more robust industry pricing dynamics and demand patterns.
Goldman maintained its Neutral rating on the shares notwithstanding these upgrades.
The bank’s research group, headed by James Schneider, anticipates Micron will exceed Wall Street revenue expectations by roughly 9% when it unveils fiscal Q3 performance later this month. Goldman projects revenue of $37.6 billion, gross margin of 83.4%, and EPS of $22.07, compared with consensus figures of $34.4 billion, 81.9%, and $19.74.
For the August quarter, Goldman’s revenue projection of $48.8 billion stands considerably above the Street consensus of $40.4 billion.
What Investors Will Be Watching
Goldman highlighted three critical factors that could influence the stock when Micron releases results: specifics regarding the breadth and pricing structure of Strategic Customer Agreements (SCAs), management commentary on DRAM pricing durability, and progress updates on Micron’s HBM development timeline — specifically whether it can capture additional market share with its forthcoming HBM4 offering.
The investment bank also observed that market participants anticipate Micron will preserve or expand its approximately 20% share of the high-bandwidth memory sector.
Goldman’s full-year 2026 revenue and earnings estimates now stand 30% and 36% above Street consensus, highlighting the substantial divergence between its outlook and that of the broader analyst community.
Goldman projects constrained supply and demand dynamics will persist through 2027, which it believes will drive elevated pricing and profit margins throughout the memory industry.
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