Memory chip stocks have been booming this year, with Micron (MU) leading the way. Advanced AI servers have skyrocketed demand, turning chips once considered “boring” into the hottest part of technology. MU stock is up nearly 750% over the past 52 weeks as investors bet on an extended memory supercycle. Raymond James recently contributed to the momentum by raising its price target to $1,100 from $530 and reiterating an “Outperform” rating ahead of its June 24 earnings report. In response, shares rose more than 6% and surpassed the $1,000 mark, although shares are now trading closer to the $900 level.
Raymond James’ bullish decision is based on more than just the rapid share price movement. Micron said in March that second-quarter revenue nearly tripled from a year ago and it expects another record quarter, with management pointing to strong demand for AI data centers, tight industry supply and improved customer visibility.
More Barchart news
For investors looking for a way to take advantage of the AI memory boom, Micron is now one of the most followed names in the market.
Why Micron keeps winning
Micron has been making headlines beyond the numbers. Just a few weeks ago, the company celebrated the production of 1-alpha (1α) DRAM, the most advanced memory ever manufactured in the United States, at its Manassas, Virginia plant. This DRAM increases the domestic supply of chips for industries such as automotive, defense and artificial intelligence, and underlines Micron’s multibillion-dollar investment plan in the United States. In early 2026, Micron was also added to the S&P 100 Index ($OEX). Inclusion in this blue-chip index attracts new index fund buyers and increases the visibility of MU stock. These developments, plus dozens of contracts won to supply high-bandwidth memory chips for leading AI companies, reinforce Micron’s central role in the rise of AI.
Technically, Micron has been in a powerful uptrend. The stock is sitting well above its 50-day and 200-day moving averages, indicating a breakout. Over the past 12 months, MU has made huge profits driven by record sales and profits. A year ago, shares were trading below $300; The stock is now near $900 and continuing to rise.
Across the market, Micron has comfortably outperformed the S&P 500 ($SPX) and its semiconductor peers in 2026. At the sector level, Micron is still trading at elevated levels, with a price-to-book (P/B) ratio of 16.8 times, significantly higher than the sector median. However, its forward price-to-earnings (P/E) ratio of 18.4 times is lower than the industry median, indicating some attractive pricing aspects.
www.barchart.com
Raymond James’s improvement stirs up the Bull case
Raymond James’ June 1 note helped fuel the latest rally. It came after Micron’s spectacular second-quarter results and as excitement builds for the fiscal third quarter.
In the note, analysts led by Melissa Fairbanks cited Micron’s huge momentum and raised their target to $1,100. MU shares immediately rose more than 6% on the news, hitting new highs by the end of the day.
Raymond James is not alone, however, as several companies have raised their targets in recent weeks. For example, HSBC and Melius also recently moved their targets to $1,100, while Citi raised its target to $840. In short, the mood on Wall Street has turned bullish.
Micron delivered a quarter beat and rise
Micron’s second quarter was a box office success. Revenue reached $23.86 billion, almost triple the previous year’s level. The increase was large; DRAM sales alone amounted to about $18.8 billion, while NAND flash revenue amounted to $5 billion, reflecting fierce demand from cloud and AI data centers.
Net income also skyrocketed. Micron reported earnings of $13.79 billion, or $12.20 per share on an adjusted basis, down from just $1.58 billion a year earlier, or $1.56 per share on an adjusted basis. Free cash flow was huge: around $6.9 billion. Micron ended the period with approximately $16.7 billion in cash and equivalents on its balance sheet. In short, the quarter broke records across the board.
CEO Sanjay Mehrotra summed it up neatly in the report: “Micron set new records in revenue, gross margin, EPS and free cash flow in the fiscal second quarter.” Mehrotra added that a “strong demand environment, tight industrial supply and…solid execution” drove the results. With AI taking off, the CEO noted that memory has become a “strategic asset” for customers. As a result, Micron’s board voted to increase the dividend by 30% in the second quarter as a sign of confidence.
Looking ahead, Micron offered bullish guidance. For the third quarter, the company forecasts around $33.5 billion in revenue with approximately 81% gross margins. That level of sales would mark another massive year-over-year (YOY) jump. The company also forecast adjusted EPS of around $18.90. Management expects “significant records again in the fiscal third quarter,” implying the recent rally is not a one-off.
Wall Street is even more optimistic. Analysts now expect fiscal 2026 earnings of $58.79 per share, up 665% year-over-year, as well as fiscal 2027 earnings of $102.26 per share. Expectations are sky-high after the spectacular March quarter.
What Are Analysts Saying About MU Stock?
Comments among analysts are overwhelmingly positive. UBS raised its target to $1,625 from $535 in late May, arguing that new long-term memory supply deals will keep prices high and profits stable. UBS even noted that there is “no reason” Micron shouldn’t market itself as a high-end chipmaker like Nvidia (NVDA), given the demand for AI. Morgan Stanley is also bullish on MU stock and maintains an “overweight” rating with a $1,050 price target.
On the other hand, Goldman Sachs remains cautious. The company is effectively an outlier in MU stock with a price target near $400 per share, warning that memory remains cyclical.
Overall, most Wall Street analysts see more upside ahead, praising Micron’s execution and pointing to multi-year AI chip contracts. MU stock has a consensus rating of “Strong Buy” based on 41 analysts with coverage. The average target of $755.63 has already been surpassed, pointing to a possible decline from current levels. However, the street high target of $1,750 implies roughly 100% upside potential from here.
www.barchart.com
On the date of publication, Nauman Khan had no (directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com
