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Micron hit another record high ahead of its earnings report due Wednesday. Photo by Michael M. Santiago / Getty Images

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Key Takeaways

  • Micron's stock hit a new all-time high on Monday, ahead of its expected third-quarter earnings report on Wednesday.
  • Options traders see shares of Micron swinging up to 12% in either direction through Friday's close.

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Micron's stunning performance this year could be about to get even better.

Shares of Micron Technology ( MU) added nearly 7% Monday to close at a fresh high just above $1,211, as excitement builds ahead of its quarterly earnings due after the closing bell Wednesday. That puts its year-to-date gain at more than 300%, making it one of the best-performing stocks of the S&P 500 so far this year, behind only Sandisk ( SNDK).

After Micron's torrid rally, many investors may be wondering whether the stock can keep up that kind of momentum. Traders are betting on a big move after Wednesday's results, however, with recent options pricing suggesting the stock could swing up to about 12% in either direction through Friday. From Monday's close, that could drive the shares to a fresh record at $1,352, or pull them back down to about $1,071.

WHY IT MATTERS TO YOU

Micron's strength so far this year might have many investors wondering whether it still has room left to rise, or could be due for a pullback.

Analysts are broadly positive about the chipmaker's prospects for its third-quarter earnings report, and beyond, as they continue to see upside in pricing for the company's memory chips, amid an industrywide shortage and booming AI demand.

Wedbush in a report published Thursday said it now expects Micron to report earnings per share of $22.84, from $19.16 previously, with revenue of $38.5 billion, from its prior estimate of $33.5 billion, citing higher industry pricing in the second quarter than what the company previously guided.1

The firm's revised third-quarter expectations are higher than the Street average, with consensus EPS estimates tracking at $20.95 on revenue of $36.15 billion, according to Visible Alpha data. Brokers tracked by the research firm are overwhelmingly bullish, with seven out of eight brokers with current ratings calling Micron a "buy."

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Prices for Micron's memory chips are expected to jump 20% through the three months ending in September, which is represented in the analysts' revised fourth-quarter estimates that could likely prove "conservative," Wedbush wrote.

Jefferies in a Sunday report said the firm's memory prices are seen rising 40% to 50% in the third quarter, sequentially, and another 30% to 40% in the following quarter. 2

Boosted earnings expectations for 2027 drove Wedbush's price target to $1,300, more than double its previous target of $550. The firm's $1,300 price target implies upside of about 7% from Monday's close, substantially higher than the consensus around $1,179, per brokers tracked by Visible Alpha data.

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  1. Wedbush. "Micron Technology: F3Q'26 Preview - Upward Trajectory for PX Continues."

  2. Jefferies. "Memory Outlook: Price Hikes > Expected; China Not a Threat in 2026/7."

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