Robert W. Baird analyst Tristan Gerra raised his price target on Micron (MU) from $235 to a new Street-high of $443, following its blockbuster Q1FY26 beat. He maintained his Buy rating, while his revised price target implies an impressive 96.4% upside potential from current levels. Gerra cited AI-driven double-digit bit demand growth, better products and fundamentals versus peers, and leadership in high-margin segments for his bullish view.
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Micron’s adjusted earnings of $4.78 per share easily beat the consensus of $3.96 per share. Sales surged 56.6% year-over-year to $13.64 billion, beating the consensus of $12.91 billion. Micron shares are up 11.3% in pre-market trading in response to its results.
Gerra is a five-star analyst on TipRanks, ranking #441 out of 10,193 analysts tracked. He has a 55% success rate and an average return per rating of 14.40%.
Micron Is Top Large-Cap Investment Idea
Gerra calls Micron one of his top large-cap investment ideas, pointing to strong AI demand for memory bits over the next few years. He highlighted ongoing product improvements and leadership in high-margin areas like LPDDR5 memory. LPDDR5 (Low-Power Double Data Rate 5) is a type of DRAM (Dynamic Random-Access Memory) used in fast, low-power memory chips for phones, AI, and high-performance apps.
Gerra emphasized that Micron currently meets only 50% to 66% of total demand; the tightest supply/demand balance in history. Yet, he remains upbeat about 2027 demand dynamics from new releases of GPUs (graphics processing units) and XPUs (custom accelerators) with much more high-bandwidth memory (HBM).
He forecasts peak EPS of $42 in fiscal 2027, with DDR5/NAND prices falling from mid-2027, while gross margins are expected to hold steady for the next six quarters. He also added that Micron’s $20 billion capex guide for FY26 represents a smaller year-over-year increase than FY25 and equals 26% of expected revenue, which is within the typical 13% to 49% range.
Is Micron Stock a Buy?
On TipRanks, Micron stock has a Strong Buy consensus rating based on 26 Buys and three Hold ratings. The average Micron price target of $278.39 implies 23.44% upside potential from current levels. Year-to-date, MU stock has surged nearly 169%.
