TLDR
- Micron shares advanced 3.3% Tuesday to $980.58, extending the prior session’s 9.9% rally, as traders seized on the post-selloff dip.
- The decline stemmed from Broadcom’s lackluster revenue outlook, which sparked a steep drop across memory chip stocks.
- UBS analyst Nicolas Gaudois characterized the pullback as a buying “opportunity,” reaffirming a Buy rating with a $1,625 target.
- Goldman Sachs boosted its 12-month Micron price target to $900 from $400, increasing revenue and EPS projections by 28% and 36% respectively, while maintaining a Neutral stance.
- Goldman anticipates Micron will exceed Street revenue expectations by approximately 9% in its upcoming fiscal Q3 report, projecting $37.6B versus the $34.4B consensus.
Micron shares are staging a comeback. Following a brutal 13% plunge last Friday — the stock’s steepest decline since April 2025 — MU gained 3.3% to reach $980.58 during early Tuesday activity, extending Monday’s impressive 9.9% rebound.
The trigger for last week’s downturn came from Broadcom’s quarterly earnings, which featured disappointing forward revenue guidance. This development rattled investors and ignited a widespread sell-off in AI-related stocks, with memory chip manufacturers bearing the brunt of the pressure.
Yet the recovery has proven equally forceful. Micron currently trades approximately 10% beneath its Wednesday closing price from last week, prior to the Broadcom-induced market turbulence.
The semiconductor stock has delivered exceptional performance throughout 2026. MU has surged 233% year-to-date, propelled by explosive demand for memory chips supporting AI infrastructure expansion.
UBS analyst Nicolas Gaudois wasted no time identifying the decline as a strategic entry point. In research published Monday, he characterized the sell-off as an “opportunity” for market participants, emphasizing sustained demand strength rather than any fundamental weakness.
“Our checks point to continuing upside in demand, not downside, which is likely to persist on agentic AI demand,” Gaudois wrote. He rates MU at Buy with a price target of $1,625.
His preferred sector selection is Samsung Electronics, with SK Hynix, Kioxia, and Nanya Technology also earning positive mentions.
Goldman Elevates Price Target to $900
Goldman Sachs delivered its own optimistic assessment Tuesday, elevating its 12-month Micron price objective to $900 from $400. The investment bank simultaneously increased its revenue and non-GAAP EPS projections by an average of 28% and 36% for 2026 and 2027, pointing to robust industry pricing dynamics and demand trends.
Goldman maintained its Neutral rating on the shares despite the substantial estimate revisions.
The bank’s research team, headed by James Schneider, anticipates Micron will surpass Wall Street revenue projections by roughly 9% in its forthcoming fiscal Q3 earnings release later this month. Goldman projects revenue of $37.6 billion, gross margin of 83.4%, and EPS of $22.07, compared to consensus figures of $34.4 billion, 81.9%, and $19.74.
For the August quarter, Goldman’s $48.8 billion revenue estimate significantly exceeds the Street consensus of $40.4 billion.
What Investors Will Be Watching
Goldman identified three critical factors that could influence the stock following Micron’s earnings announcement: specifics regarding the scale and pricing of Strategic Customer Agreements (SCAs), management’s perspective on DRAM pricing durability, and progress reports on Micron’s HBM roadmap — especially whether the company can capture additional market share with its upcoming HBM4 offering.
The investment bank also observed that market participants anticipate Micron maintaining or expanding its approximately 20% share of the high-bandwidth memory segment.
Goldman’s full-year 2026 revenue and EPS projections now stand 30% and 36% above Wall Street consensus, highlighting the significant gap between its outlook and the broader analyst community.
Goldman forecasts constrained supply and demand dynamics persisting throughout 2027, which it believes will drive elevated pricing and margin expansion across the memory semiconductor industry.
