Ahead of Micron Technology’s (MU) fiscal first quarter results on December 17, TD Cowen analyst Krish Sankar reiterated a Buy rating on the stock with a $275 price target. The five-star analyst is confident that the chipmaker will deliver a strong earnings beat next week. Sankar also raised estimates ahead of the print, citing improving average selling prices (ASPs), stronger margins, and better visibility across key memory segments.
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Sankar said that he remains “comfortable” with his well-above-consensus EPS forecast of $5.38 for the February quarter, noting that investors will react positively if Micron signals that its strong margins can continue.
He added that near-term stock drivers include pricing trends for non-HBM products in early 2026 and ongoing qualification progress for Micron’s next-generation HBM4 technology.
Why The Q1 Earnings Report Matters
Sankar warned that the upcoming report carries added weight as Micron stock tends to be more sensitive when it’s trading at a high valuation, like it is now.
He pointed to mid-2024 as an example, when Micron traded at similar valuation levels. At the time, the stock slid into a 10-month downturn after missing buy-side estimates, raising concerns about HBM oversupply, and surprising investors with higher-than-expected capital intensity guidance.
Sankar said firmer memory prices, rising HBM demand, and better margins put Micron in a stronger spot now, and a solid earnings beat could boost its momentum into 2026.
Is MU a Good Stock to Buy Right Now?
Currently, Wall Street has a Strong Buy consensus rating on Micron stock based on 27 Buys and three Holds assigned in the past three months. The average MU stock price target of $252.86 indicates a 2.13% downside risk.
