Key Takeaways
- Micron (MU) received a substantial 43% price target increase from Wolfe Research, moving from $350 to $500 before Q2 FY26 earnings on March 18.
- Chris Caso, the covering analyst, reaffirmed his Outperform rating based on accelerating memory pricing trends.
- Projections indicate DRAM pricing could climb approximately 100% year-over-year during 2026; NAND pricing may increase around 95%.
- Updated financial models from Wolfe project $94B revenue with $44 EPS for 2026, expanding to $125B revenue and $61 EPS by 2027.
- Memory demand from Nvidia and Google infrastructure is estimated to expand 124% in 2026 and 143% in 2027, combining both HBM and DDR requirements.
Chris Caso, an analyst at Wolfe Research, elevated his price objective for Micron Technology to $500 from $350 this Tuesday — representing a substantial 43% increase — while maintaining his Outperform rating.
This upgrade arrives just before Micron releases its Q2 FY26 financial results on March 18.
Caso holds the 110th position among over 12,000 analysts monitored by TipRanks, demonstrating a 63% accuracy rate with an average one-year return of 26.6% per recommendation.
His central argument is clear: memory chip pricing is accelerating beyond Wall Street’s previous expectations.
Wolfe’s revised projections anticipate DRAM pricing will climb approximately 100% on a year-over-year basis throughout calendar 2026, while NAND pricing is expected to follow with gains near 95%. These significant increases are attributed primarily to artificial intelligence infrastructure buildout.
Artificial Intelligence Fueling Memory Demand Surge
Caso’s research concentrated on memory requirements from Nvidia and Google infrastructure platforms. His examination covered both HBM and DDR memory specifications across their product roadmaps extending through 2027.
The projections are remarkable. Total DDR and HBM usage across these platforms is anticipated to expand approximately 124% during 2026, followed by an additional 143% growth in 2027.
DDR5 technology is emerging as a crucial AI DRAM category, according to the firm’s analysis — extending beyond just HBM. This observation is significant because it broadens Micron’s potential market opportunity.
AI computing workloads are driving higher memory requirements per processor. As model complexity increases, platforms require additional memory capacity for operation — positioning Micron as a major supplier.
Updated Financial Projections from Wolfe
Wolfe’s current model anticipates $94 billion in revenue and $44 earnings per share for Micron during calendar year 2026. These figures are expected to expand to $125 billion in revenue with $61 EPS by 2027.
At the current trading level near $403, the shares are valued at approximately 6.6 times Wolfe’s 2027 EPS projection — a valuation the firm considers reasonable given anticipated growth rates.
The research firm also presented an optimistic scenario. Should commodity DRAM pricing jump 150% year-over-year in 2026, revenue could reach $160 billion by 2027, with EPS potentially hitting $80. Interestingly, this 150% assumption falls below Trendforce’s current forecast of 166%.
Wolfe isn’t the only bullish voice on Wall Street. Aletheia Capital recently established a $650 price target for Micron. UBS increased its objective to $475, highlighting memory supply limitations extending through 2028. Stifel assigned a $550 target, emphasizing stronger-than-anticipated memory pricing and server DDR5 adoption.
Among 27 Wall Street analysts covering the stock, Micron holds a consensus Strong Buy rating — consisting of 26 Buy recommendations and one Hold. The mean price target stands at $438.44, suggesting approximately 8.76% potential upside from present levels.
On the technology front, Micron recently delivered customer samples of its 256GB SOCAMM2 modules — representing the highest-capacity LPDRAM server modules in the company’s history. These modules enable up to 2TB of LPDRAM per 8-channel server CPU configuration.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
