Susquehanna Lifts Micron Price Target to $2,000 After Q3 Beats
MU•Micron reported Q3 revenue of $41.46 billion and adjusted EPS of $25.11, surpassing consensus, with DRAM sales tripling to $31.3 billion and NAND revenue nearly quadrupling to $9.9 billion. Susquehanna raised its price target to $2,000 and forecasts FY27 free cash flow exceeding $110 billion.
1. Q3 Results Exceed Expectations
Micron delivered revenue of $41.46 billion and adjusted EPS of $25.11, topping Street estimates, driven by a 200% year-on-year surge in DRAM revenue to $31.3 billion and a 290% jump in NAND sales to $9.9 billion, while gross margin expanded to 84.9%.
2. Analyst Upgrade and Guidance
Susquehanna raised its price target from $1,750 to $2,000 and projects free cash flow above $110 billion in fiscal 2027, alongside annualized EPS potential of $200. For the current quarter, Micron guided revenue around $50 billion and EPS near $31, again ahead of consensus.
3. Strategic Contracts and Pricing Environment
Micron has secured 16 take-or-pay customer agreements covering about 20% of DRAM bits and one-third of NAND bits, establishing price floors that preserve high margins. Meanwhile, market prices for DRAM and NAND chips have surged approximately 60% and 80% quarter-on-quarter, reflecting tight HBM supply and robust AI demand.
