Micron shares climbed nearly 7% on Wednesday after major Wall Street firms raised their price targets and the company announced a $1.8 billion acquisition of a Powerchip Semiconductor fab in Taiwan. Stifel lifted its target from $300 to $360 while TD Cowen boosted its outlook from $300 to $450, citing constrained memory supply and escalating AI demand. The purchase of the P5 facility is expected to add significant DRAM capacity when fully integrated in the second half of 2027, giving institutional investors confidence in sustained pricing power.

In its first quarter, Micron reported a 56% year-over-year increase in revenue, driven by average selling prices that propelled its gross margin from 38.5% to over 56%. The Cloud Memory BU delivered revenue of $5.28 billion—up nearly 100%—with a gross margin expansion to 66% from 51% a year earlier. The Automotive and Embedded BU posted record revenue of $1.7 billion, representing 13% of total company revenue of $13.6 billion. Adjusted EPS rose 167% to $4.78, reflecting both higher volumes and favorable price realizations.

Micron trades at a forward P/E just above 11 times, well below the semiconductor industry average, while analysts forecast EPS of $33 in 2026 and $41.50 in 2027. These projections underpin a consensus fair-value target of $430, with several models suggesting potential to reach $500 by year-end 2026. As AI training clusters continue to drive demand for HBM and DDR5 DRAM, and with memory supply remaining tight through 2027, Micron’s financial outlook remains robust for long-horizon investors.