Micron Posts 346% Revenue Surge, JPMorgan Lifts Target to $1,540
JPM•JPMorgan nearly tripled its price target on Micron shares to $1,540 after the chipmaker reported a 346% revenue jump to $41.46 billion and EPS of $25.11. Micron secured 16 five-year contracts worth $22 billion and disclosed $100 billion in remaining performance obligations while facing persistent HBM and DRAM shortages.
1. JPMorgan Price Target Hike
JPMorgan raised its price target on Micron shares to $1,540 from $550 and reiterated its Overweight rating, citing a shift to multi-year contracted supply agreements that protect margins and revenue.
2. Record Q3 Financial Results
Micron reported Q3 revenue of $41.46 billion, a 346% year-on-year increase, and GAAP EPS of $25.11, both substantially above consensus estimates and driving a 17% premarket rally.
3. Strategic Long-Term Contracts
The company secured 16 five-year supply agreements worth $22 billion in take-or-pay orders across data center, consumer and automotive markets, underpinned by cash deposits and pricing floors.
4. Demand Constraints and Outlook
Executives noted high-bandwidth memory and DRAM demand outpacing supply into 2028, and disclosed approximately $100 billion in remaining performance obligations, underscoring sustained contract visibility.
