Micron Technology's stock has surged 215.97% year-to-date. The company's Q1 FY2026 earnings report, released on December 17, successfully dispelled the market gloom previously cast by Nvidia and Broadcom—both of which saw stock declines despite strong earnings performance.
Micron's earnings report and Q2 guidance were exceptionally strong, sparking positive market reactions. On the first trading day post-earnings, Micron's stock closed up 10.2% at $248.55.
**Key Highlights of Micron Technology's Q1 FY2026 Earnings Report** - Revenue: $13.64 billion, up from $8.71 billion YoY - GAAP Net Income: $5.24 billion, or $4.60 diluted EPS - Non-GAAP Net Income: $5.48 billion, or $4.78 diluted EPS - Operating Cash Flow: $8.41 billion, compared to $3.24 billion YoY
**Micron Technology's Q2 FY2026 Outlook** - Revenue: $18.70 billion ± $400 million - Gross Margin: 67.0% ± 1.0% - Operating Expenses: $1.56 billion ± $200 million - Diluted EPS: $8.19 ± $0.20
Following the earnings release, Bank of America analyst Vivek Arya and his team shared their views on Micron's stock.
**Bank of America Raises Micron's Price Target to "Buy"** The team increased Micron's adjusted EPS estimates for FY2026, FY2027, and FY2028 by 62%, 80%, and 42%, respectively, to $31.84, $38.85, and $29.15.
Analysts noted key risks for Micron, including volatility in AI demand, pricing shifts in traditional memory products, industry capacity expansions, and the possibility that current gross margins (68%) and operating margins (60%) may have peaked.
Arya stated that despite potential AI demand fluctuations, Micron's high-bandwidth memory (HBM) products for 2026 are already sold out, with customers signing multi-year supply agreements. This could drive a more sustained upturn compared to past industry cycles.
**Downside Risks for Micron** - Memory ASP declines exceeding expectations - Intensified competition - Weak demand in key end markets (data centers, smartphones, PCs)
Arya upgraded Micron's rating from "Neutral" to "Buy," raising the price target from $250 to $300, based on a 2.3x price-to-book valuation for CY2027 (within Micron's historical P/B range of 0.8x–3.1x). He added that this target assumes the memory industry is in an upcycle.
**Other Analysts** Morgan Stanley raised Micron's price target from $338 to $350, maintaining an "Overweight" rating.
According to MarketBeat, the consensus rating for Micron is "Buy"—34 analysts recommend "Buy," while 3 suggest "Hold," with an average target price of $282.61.
Goldman Sachs maintained a "Neutral" rating post-earnings, keeping its target price at $235.00.
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