Shares of Micron (MU) are up by roughly 4% at market open on Monday after KeyBanc’s five-star-rated analyst John Vinh reiterated his Buy rating. He also maintained a $600 price target, implying over 60% upside from current levels. The analyst raised his earnings estimates, pointing to strong demand for processors and memory chips as a key growth driver. Vinh now expects EPS (earnings per share) of $64.37 for FY26, up from $60.18, and $131.38 for FY27, up from $118.49.
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For context, Micron makes NAND chips for long-term storage like SSDs and smartphones, and DRAM chips that act as fast working memory in computers and data centers.
Micron’s Recent Stock Performance
Since its Q2 FY26 earnings report last month, Micron stock has been on a volatile ride. While the company delivered strong results and an upbeat outlook, the reaction was surprisingly negative, triggering a sharp selloff. As a result, the stock has fallen more than 20% since the earnings release.
More recently, MU stock came under additional pressure following news of a new compression algorithm from Google (GOOGL), which improves AI efficiency and reduces memory requirements. However, strong support from Wall Street has helped MU stock recover, with analysts arguing that greater AI efficiency could ultimately drive higher overall memory demand over time.
Despite the volatility, MU stock is down just 1.10% over the past 30 days, suggesting signs of consolidation after recent swings. Year-to-date, MU stock has gained over 28%.
KeyBanc Remains Bullish on Micron
KeyBanc continues to stay positive on Micron, highlighting several strong tailwinds for the stock.
First, pricing trends remain supportive. Vinh expects DRAM and NAND memory prices to rise by 30% to 50% in the second quarter, even though the pace of increases may slow from earlier spikes.
At the same time, he noted that new long-term supply agreements (LTAs) are improving visibility. These deals, especially with large cloud companies, include pricing floors and upfront payments. Importantly, these agreements are seen as much stronger than past contracts, which were easier to break. As a result, they could reduce downside risk during weaker cycles and support higher valuations over time.
Overall, while the memory market remains cyclical, better pricing and stronger contracts are expected to keep Micron’s long-term outlook intact.
Is Micron Stock a Good Buy?
Wall Street analysts maintain a Strong Buy rating on MU stock, with 26 Buys and three Holds assigned over the past three months. Micron’s average price target of $533.53 implies about 46% upside from current levels.
