Shares of Micron Technology surged 9.3% on Monday, closing at $576.45 after touching an all-time intraday high of $592.77. The rally, which added to a 60.7% gain over the past month and a 90% year-to-date advance, was fueled by blowout fiscal Q2 earnings and a wave of bullish analyst price targets, with D.A. Davidson setting a Street-high $1,000 target—implying roughly 73% upside from current levels.
The company reported net income of $13.78 billion in the quarter ending February, a 772% jump from $1.58 billion a year earlier, on revenue of $23.86 billion, up 196%. Guidance for the third quarter calls for revenue of $33.5 billion, gross margins of 81%, and diluted EPS around $18.90, reflecting insatiable demand for high-bandwidth memory (HBM) used in AI systems. CEO Sanjay Mehrotra noted HBM products are sold out for several quarters, with tight supply expected to persist through at least 2027 due to long fabrication lead times.
Analysts also pointed to strong signals from hyperscale cloud providers. Meta, Microsoft, and Amazon have all flagged soaring memory costs as a major factor in their AI infrastructure spending. On Wall Street, 27 of 30 analysts covering MU rate it a Buy, with no Sell calls. Goldman Sachs noted that Micron alone accounts for 51% of all S&P 500 earnings revisions since the onset of the Middle East conflict, underlining its outsized market influence.
Despite the stock’s overbought technical readings (RSI above 71), the valuation gap with peers like Sandisk (trading at ~40x trailing earnings vs MU’s ~25x) continues to attract institutional interest. Micron is scheduled to present at the JP Morgan Global Technology Conference on May 20.
