Micron, Circle Internet and More Trending With Analysts

Analysts are intrested in these 5 stocks: ( (MU) ) and ( (CRCL) ). Here is a breakdown of their recent ratings and the rationale behind them.

Micron Technology is once again in the spotlight as analysts turn more optimistic on the memory-chip maker’s long-term prospects. Vivek Arya has upgraded Micron (MU) to a Buy, lifting his price objective to $300 from $250, implying meaningful upside from the recent price of about $225. He argues that Micron is entering a “stronger for longer” upcycle, driven by booming demand for AI-related memory and a more disciplined supply environment. The analyst now sees Micron capable of generating more than $40 in earnings per share at the peak of this cycle, roughly four times its prior peak EPS, and has raised his FY26–FY28 profit estimates by as much as 80% versus previous forecasts.

A key reason behind the bullish view is Micron’s growing exposure to data-center and AI workloads, where high-bandwidth memory (HBM) and advanced DRAM are essential components. The company’s cloud memory business has doubled year over year, with data-center NAND alone now topping $1 billion per quarter in sales. At the same time, Micron’s LPDRAM and HBM products are ramping across AI servers, and management indicates that HBM is effectively sold out through 2026, with customers signing multi‑year agreements. This gives Micron a visibility and pricing power it lacked in past memory cycles, suggesting that the current upturn may prove more durable than investors typically expect in such a cyclical industry.

The analyst also highlights Micron’s improving balance sheet and cash-generation profile as major support for the upgraded rating. Free cash flow has already reached roughly $4 billion per quarter in Micron’s first fiscal quarter and could climb toward $6–$8 billion by the fourth quarter as pricing and volumes continue to improve. With leverage declining and net cash turning positive, Micron is poised to resume significant share buybacks once its obligations under the U.S. CHIPS Act ease, potentially as soon as next year. Arya bases his $300 price objective on a 2.3x price‑to‑book multiple on 2027 estimates, a level he views as “mid‑cycle” within the stock’s historical range of 0.8x to 3.1x.

However, the bullish case is not without risks, and Arya is quick to flag several potential pitfalls that investors should watch. One concern is that current spot prices for certain memory products, particularly DDR4 and DDR5, have surged to abnormally high levels of $25–$50, while contract prices remain below $10. Over time, spot and contract prices are likely to converge, which could inject volatility into memory stocks if the adjustment comes suddenly. In addition, industry capital spending is set to climb sharply in 2026, with overall capex expected to increase more than 30% year over year. Micron itself plans to ramp spending by about 30%, while rival SK Hynix could boost capex by around 55%, raising the risk that future supply growth might eventually weigh on pricing.

Despite these caveats, the tone of the latest recommendation on Micron is decidedly optimistic, reflecting confidence in both the company’s strategic positioning and its financial resilience. The combination of structural AI demand, tighter supply discipline, and stronger free cash flow offers a compelling backdrop for long‑term investors willing to accept short‑term swings in the memory market. While consensus earnings estimates still lag behind the analyst’s upgraded forecasts, the gap could narrow if Micron continues to demonstrate robust margins—currently in the high‑60% range for gross margin and around 60% for operating margin. For now, the stock is being recast not just as a cyclical memory name, but as a core beneficiary of the AI data‑center build‑out.

Circle Internet Group, the company behind the USDC stablecoin, is drawing cautious interest from Wall Street as it transitions from crypto niche to a more mainstream financial player. Analyst Mike Colonnese has initiated coverage on Circle (CRCL) with a Neutral (Hold) rating and an $85 price target, arguing that the stock’s current valuation already reflects most of its near‑term growth opportunity. Circle is being positioned as one of the most regulator‑friendly stablecoin issuers, an important differentiator in a market where regulatory clarity can make or break business models. The analyst notes that investors should see Circle as the only pure‑play public way to gain exposure to the fast‑growing market for dollar‑backed stablecoins.

At the heart of the investment story is USDC, Circle’s flagship USD‑backed stablecoin, which Colonnese calls a “best‑of‑breed” product in what he expects to be a winner‑takes‑most market. Stablecoins act as digital dollars on public blockchains, providing price stability through their peg to fiat currencies while enabling fast, low‑cost transactions across borders and platforms. Circle’s strong compliance posture and close engagement with regulators may help it capture a significant share as global demand for digital dollars accelerates, especially in emerging markets that lack stable local currencies. Nonetheless, the analyst believes that at current prices, CRCL already prices in a robust growth trajectory, leaving only a balanced risk/reward for new investors.

Looking ahead, Colonnese estimates that the total stablecoin market could grow from about $200 billion in 2024 to roughly $1.1 trillion by 2030, implying an annual growth rate of about 32%. He expects three main drivers: deeper integration of USD‑backed stablecoins into traditional finance for all kinds of payment flows; rising demand for digital dollars in emerging economies; and a broader expansion in the overall crypto market. A recent example of how quickly this integration is advancing came when payments giant Visa announced it would begin settling certain U.S. transactions in USDC, allowing banks and merchant acquirers to use Circle’s stablecoin directly. This move is seen as a major endorsement from a traditional finance heavyweight and a sign that stablecoins are moving beyond the crypto trading niche.

Despite the promising long‑term backdrop, the Neutral rating reflects some important near‑term pressures on Circle’s business model. With the Federal Reserve expected to cut interest rates, Circle’s interest income on the reserves backing USDC is likely to decline, putting pressure on margins. At the same time, distribution costs are rising as Circle strives to expand the reach of USDC across more platforms and partners. Colonnese argues that, to become more bullish on the stock and justify a higher valuation, he would need to see a sharp, sustained increase in USDC’s circulating supply that fully offsets these margin headwinds. Without that, he views upside in the stock as limited, even if the long‑term story for stablecoins remains highly attractive.

Valuation is another key piece of the analyst’s cautious stance on Circle. The $85 price target is based on a 38x EV/EBITDA multiple applied to his 2026 adjusted EBITDA forecast of $543 million, a modest premium to other digital‑asset‑related equities. That premium is justified, in his view, by Circle’s scarcity value as the only pure stablecoin play in public markets and by the potential for regulatory progress, such as U.S. crypto market‑structure legislation expected in early 2026 and the anticipated approval of Circle’s National Trust Charter. Potential upside catalysts include faster‑than‑expected growth in USDC’s market cap and renewed investor enthusiasm for crypto, which could drive multiple expansion. On the downside, more aggressive Fed rate cuts or slower adoption of stablecoins could weigh on both fundamentals and sentiment. For now, investors are being advised to watch Circle closely but to temper expectations for near‑term share‑price gains.