Micron inventory bullish momentum hit a peak on June 15, with MU surging practically 11% to shut at $1,087.99, additionally reaching its 52-week excessive of $1,097.47 throughout the session. Two main analyst upgrades dropped over the identical weekend, and with Micron inventory earnings due June 24, the buy-or-hold debate could be very a lot alive on the time of writing.
Micron Inventory Earnings Outlook, Bull Case And Purchase Or Maintain Evaluation
Analysts Simply Repriced MU By Double
The size of the analyst revisions that got here out over the weekend is genuinely hanging. TD Cowen’s Krish Sankar raised his Micron worth goal to $1,500 from $660, a 127% enhance, whereas RBC Capital Markets’ Srini Pajjuri additionally moved his goal to $1,200 from $525. Aletheia Capital got here in with probably the most aggressive name, elevating its goal to $1,600 from $650. Wolfe Analysis additionally reaffirmed its Outperform ranking at a $1,250 goal as lately as June 11.
The argument throughout all these upgrades is similar: AI-driven demand for Excessive Bandwidth Reminiscence runs properly forward of obtainable provide, and each TD Cowen and RBC see the present DRAM upcycle lasting an extra 5 to 6 quarters. That type of runway is an enormous a part of what drives the Micron inventory bullish repricing proper now.
TD Cowen’s Krish Sankar said:
“Demand for reminiscence utilized in AI techniques continues to be operating forward of provide, and that might maintain costs stronger for longer.”
Sankar additionally now expects Micron to earn round $23 per share within the third quarter, above Wall Avenue’s consensus estimate of roughly $20, and sees roughly $27 per share within the August quarter.
The Micron Inventory Bull Case In Plain Phrases
Micron’s HBM capability is bought out by way of 2026, with long-term provide agreements already signed and stretching properly into the longer term. Nvidia additionally licensed Micron, alongside Samsung and SK Hynix, to provide HBM4 for its Vera Rubin AI platform, locking Micron into the highest-end AI reminiscence roadmap. For Q3, the corporate guided to gross margins of round 81%, far above historic norms and a direct measure of HBM pricing energy. Income steerage sits at roughly $33.5 billion, although analyst estimates vary as excessive as $40.9 billion, a spot of greater than $7 billion that displays how fast-moving the Micron inventory bullish story actually is at this stage of the cycle.
Ought to You Purchase Micron Inventory Immediately Or Wait?
The Micron inventory bull case seems to be robust on paper. Offered-out HBM, report margin steerage, and an upcycle that analysts say has quarters nonetheless to run all assist the concept that you should purchase Micron inventory sooner or later. However the inventory already had a parabolic transfer 12 months thus far, and anybody asking whether or not to purchase Micron inventory as we speak has to account for the earnings bar being objectively excessive going into June 24.
Shopping for proper earlier than a binary earnings occasion carries apparent danger for anybody watching the Micron inventory bullish setup from the sidelines. Ready till after June 24 trades some potential upside for a a lot clearer learn on pricing, HBM income progress, and any 2027 provide commentary. Both manner, Micron inventory earnings subsequent week will reply lots of the questions the market has been asking all 12 months.
