Micron Price Targets Raised to $540 After Triple-Digit AI-Driven Earnings Surge
Micron saw price targets raised by Citi to $510 and Argus to $540 after triple-digit quarterly revenue and earnings growth driven by AI-related DRAM and high-bandwidth memory demand. Q3 revenue guidance topped consensus by $10.2 billion and profit forecasts nearly doubled while margins exceeded 80%.
1. Price Target Hikes
Citi lifted Micron’s price target from $430 to $510 and Argus raised its target from $320 to $540 while both firms maintained Buy ratings.
2. Exceptional Q2 Results
Micron’s fiscal Q2 revenue and adjusted earnings rose by triple-digit percentages year-over-year, driven by strong pricing and AI-related DRAM and high-bandwidth memory demand.
3. Strong Q3 Guidance
The company issued fiscal Q3 revenue guidance roughly $10.2 billion above consensus and profit forecasts near twice analyst estimates, with current DRAM margins around 81%.
4. Outlook and Risks
Rising capital expenditures in the semiconductor industry and potential DRAM price declines represent key risks, and investors will track whether AI-driven demand sustains profitability growth.