HSBC analyst Ricky Seo raised his price target on Micron Technology (MU) by nearly 43% ahead of the memory chipmaker’s second-quarter fiscal 2026 results. Seo maintained his Buy rating while boosting the price target from $350 to a Street-high of $500, implying 28.5% upside potential.
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Seo attributed Micron’s 92% share price surge over the past three months, far outpacing the Nasdaq’s 1% gain, to rapidly rising DRAM (Dynamic Random Access Memory) prices. Surging demand for server DRAM and enterprise SSD (Solid-State Drive) storage, driven by AI inferencing needs like token management, retrieval-augmented generation, and key-value caching, has created supply shortages. These pressures are now spilling over into PC and mobile markets, further lifting prices.
HSBC Raises Q2 Forecasts
Ahead of Micron’s results, Seo revised his model estimates upward. He now projects Q2 operating profit of $12 billion, up 88% from the prior quarter, with revenue of $20 billion, suggesting a 47% quarter-over-quarter rise. He also expects DRAM blended average selling prices (ASP) to climb 45% quarter-over-quarter, higher than his prior estimate of 37%.
Seo anticipates the ongoing shortage will persist through the year-end, powering robust earnings growth for Micron in fiscal 2026. This includes projected operating profit of $51 billion (up 368% year-over-year) and sales of $84 billion (up 124% year-over-year).
Is Micron a Good Stock to Buy?
Wall Street remains optimistic about Micron’s long-term prospects. On TipRanks, Micron has a Strong Buy consensus rating based on 26 Buys and two Hold ratings. The average Micron price target of $374.35 implies 5.8% downside potential after the stock’s recent rally. Over the past year, MU shares have surged over 279%.
