Goldman Raises Micron Price Target to $900, Keeps Neutral Ahead of Earnings
MU•Micron Technology shares fell 2% after rallying 15% over the past five sessions as Goldman Sachs raised its price target to $900 from $400 but retained a Neutral rating ahead of the June 24 earnings. Goldman cites robust AI-driven high-bandwidth memory demand and warns earnings may peak in fiscal 2027.
1. Share Performance
Micron Technology shares slipped 2% in Friday trading following a 15% rally over the previous five sessions, reflecting heightened volatility in semiconductor stocks. This pullback comes as investors balance recent gains against stretched valuations in the memory-chip sector.
2. Analyst Revision
Goldman Sachs lifted its Micron price target to $900 from $400 but maintained a Neutral rating, citing elevated investor expectations ahead of the upcoming earnings release. The firm noted that Micron trades at roughly 10 times forward earnings, presenting a discount to broader technology benchmarks.
3. Market Outlook
Goldman projects continued profit growth driven by AI-related high-bandwidth memory products, while cautioning that DRAM pricing could reach a cyclical peak in fiscal 2027. Investors are likely to focus on the durability of memory chip pricing, progress in advanced memory technologies, and updates on long-term customer agreements.
