Baird has reaffirmed its outperform rating for Micron Technology and raised its price target from $1,280 to $1,520, indicating a potential upside of 40% based on Friday's closing price.
Analyst Tristan Gerra highlighted three key factors contributing to this positive outlook: the growing demand for agentic AI, which is expected to boost CPU demand into next year; a slowdown in dynamic random access memory (DRAM) supply growth anticipated for 2027; and an improved margin profile for high bandwidth memory (HBM) in the coming year.
Micron's stock has surged 279% in 2026, largely due to a memory chip shortage, with shares reaching an intraday high of $1,255 on June 25. As Micron prepares for its fiscal fourth-quarter report, analysts are expecting substantial year-over-year earnings growth of 939%, with 46 out of 49 analysts rating the stock as a buy or strong buy, and an average price target suggesting a 34% upside