Micron Raises Price Target to $1550 and Signs Anthropic Memory Deal
MU•Needham raised its price target on Micron Technology to $1550 from $500 while maintaining a Buy rating ahead of its June 24 earnings report. Micron signed a strategic memory and storage supply agreement and equity investment with Anthropic and faces Q3 estimates of EPS $20.39 on revenue $35.5 billion.
1. Needham Raises Price Target
Needham raised its price target on Micron Technology to $1550 from $500 and maintained a Buy rating ahead of its June 24 quarterly results, citing firmer memory-market conditions, steady demand and limited new supply that support a longer memory cycle and justify a higher valuation for the company.
2. Strategic Anthropic Agreement
Micron signed a strategic memory and storage supply agreement and made an equity investment in AI developer Anthropic as part of a collaboration to optimize high-bandwidth memory, DRAM and SSD performance across Claude model workloads, enhancing visibility into future orders and strengthening its position in the AI infrastructure market.
3. Q3 Earnings Forecast
Analysts forecast Micron’s third quarter earnings at $20.39 per share on $35.5 billion in revenue, reflecting year-over-year growth of 967% in EPS and 281% in revenue, driven by DRAM revenue projected at $27.5 billion and NAND revenue at $7.7 billion with margins expected to exceed 81%.
4. Stock Performance and Outlook
Micron’s stock has surged over 300% year to date, reaching a record close of $1192 before recent broad tech sell-off pressures caused a 9% premarket pullback, with investors eyeing whether upcoming earnings and the Anthropic agreement will sustain momentum or expose risks in demand and supply dynamics.
