Micron (MU) Stock: Wall Street Retains Strong Buy Rating Ahead of Q2 Earnings

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TLDR

  • MU shares fell approximately 8% on Tuesday amid U.S.-Iran conflict worries, then rebounded by roughly 2% on Wednesday
  • Micron’s Q2 FY26 earnings are scheduled for March 18; Wall Street forecasts EPS to jump 447% year-over-year to $8.54
  • Stifel increased its price target to $550, noting Micron’s expected “software-like” gross margins by mid-2026
  • UBS lifted its target to $475, predicting DRAM shortages will continue through 2027 and 2028
  • Micron introduced a new 256GB LPDRAM module — the highest-capacity CPU-attached module currently available

Micron Technology’s stock declined on Tuesday, dropping about 8% as wider concerns over the U.S.-Iran conflict shook markets. Korean memory competitors Samsung and SK Hynix also saw losses due to fears that increasing energy costs could pressure chipmakers.

MU Stock Card

MU shares rebounded by roughly 2% on Wednesday.

Over the past month, the stock has decreased by 9%. However, looking at a longer time frame, it’s still up 319% — a figure that explains why analysts aren’t abandoning the stock.

The next key milestone is Micron’s Q2 FY26 earnings report on March 18. Wall Street anticipates a strong quarter: EPS of $8.54 (a 447% year-over-year increase) and revenue projected to rise over 134% to $18.88 billion.

These are not low expectations. But memory market analysts state the figures are reasonable — and could even be cautious.

Stifel analyst Brian Chin (a five-star-rated analyst) increased his price target from $360 to $550 and maintained his Buy rating. His rationale: memory pricing has exceeded even his own predictions.

“Memory pricing is reaching levels we didn’t anticipate,” Chin noted, highlighting a growing supply-demand gap that shows no signs of narrowing soon.

Chin’s supply-side checks indicate memory capacity will remain largely unchanged over the next 12 months. He forecasts Micron’s gross margins will hit “software-like” levels — in the mid-to-upper 70% range — by mid-year, and stay there through the end of 2026.

He also contends that consensus estimates are still too conservative and will need to be increased in the coming quarters.

Analyst Price Targets Keep Climbing

UBS analyst Timothy Arcuri is also optimistic, raising his price target from $450 to $475. He cited strong pricing trends across both core DRAM and NAND, based on recent industry checks.

Arcuri predicts DRAM shortages will last through 2027 and into 2028 — a longer duration than many had anticipated.

With 26 Buy ratings and only two Hold recommendations ahead of earnings, MU holds a Strong Buy consensus rating on Wall Street. The average price target is $417.81, suggesting approximately 10% upside from current share prices.

New 256GB Module Aims at AI Data Centers

Beyond the earnings anticipation, Micron also announced a new product this week. The company has begun shipping customer samples of its new 256GB SOCAMM2 LPDRAM module.

Micron states this is the highest-capacity CPU-attached LPDRAM module available today.

The module uses what Micron describes as the industry’s first monolithic 32Gb LPDDR5X design, designed to provide higher memory density and improved power efficiency for AI and high-performance computing tasks.

The new module provides 33% more capacity than the previous top 192GB SOCAMM2 configuration. It also supports up to 2TB of LPDRAM per 8-channel CPU — allowing for larger context windows and more complex AI inference tasks.

Its power consumption is about one-third that of comparable RDIMM solutions, which could help hyperscalers reduce energy costs and enhance server efficiency.

Micron noted that this launch underscores its focus on packaging and memory technology to address the increasing demand for high-capacity, energy-efficient solutions in next-gen AI data centers.