Micron (MU) has obtained an endorsement by Financial institution of America as one of many “greatest funding concepts” on in the present day’s inventory market. The cosign helped gas MU shares increased by as a lot as 10% on Tuesday. Micron’s fiscal Q3 2026 report gave bullish consultants additional perception within the semiconductor developer’s inventory progress.
BofA analyst Vivek Arya lifted his worth goal to $1,550 from $1,500 and reiterated a Purchase score, citing “one other memorable beat.” Arya has additionally framed the current chip pullback as a “summer season reset” fairly than a elementary reversal. Additional, the decision implies over 70% upside from the inventory’s present worth of $958.70. With Financial institution of America’s endorsement as a inventory to look at, different high companies are additionally issuing bullish forecasts for MU. TD Cowen has additionally moved to $1,500, and the Road consensus goal sits at $1,491.95, with 31 Purchase and 9 Sturdy Purchase scores towards a single Sturdy Promote.
As reported beforehand, Income landed at $41.46 billion, up 345.72% yr over yr from $9.30 billion. GAAP internet revenue was $28.24 billion, up 1,398.3%. Non-GAAP gross margin hit 84.9% (GAAP 84.6%, up from 37.7% a yr in the past), and non-GAAP diluted EPS of $25.11 topped the $20.28 consensus by 23.79%, the eighth straight quarterly beat. Moreover, Cloud Reminiscence generated $13.77 billion, with Core Information Middle and Cell and Consumer every at $11.52 billion and Automotive and Embedded at $4.63 billion.
Micron shares have climbed 715% over the previous yr and stand 223% increased year-to-date. The inventory trades round $925 after hitting above $1,000 final month, pushing its market capitalization previous $1 trillion. Nevertheless, worth alone tells buyers little with out context, as a result of the corporate’s future earnings energy is the place the optimism lies. Wall Road forecasts Micron will develop earnings at 172% yearly over the subsequent 5 years. That progress stems immediately from AI workloads demanding way more high-bandwidth reminiscence than the trade can provide.
