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Micron Stock Jumps With Analysts and the Market Loving Its Earnings
By Adam Clark
and Callum Keown
Updated June 25, 2026, 10:15 am EDT / Original June 25, 2026, 4:03 am EDT
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In this article
Key Points
About This Summary
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Micron’s stock rose 9.5% after reporting quadrupled revenue and a tenfold earnings increase, with the chip shortage expected to extend beyond 2027.
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Micron secured 16 long-term supply deals, guaranteeing approximately $100 billion in revenue and ensuring gross margins well above past peaks.
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Analysts aggressively hiked price targets for Micron, with KeyBanc raising its target to $1,600 from $600, signaling a “new era” for memory.
The question for Micron Technology
MU\ \ +15.74% coming into its earnings was not how big the memory-chip boom is, but how long it can last. Longer than anyone originally thought, appears to be the answer—and analysts and the stock market are rushing to catch up.
Micron was up 9.5% to $1,148 in early trading on Wednesday following its blowout earnings report.
Beyond the figures—quadrupled revenue, a more than tenfold rise in earnings—the key point was Micron’s confidence that the chip shortage would go beyond 2027 amid intense demand for its components in artificial-intelligence hardware.
Perhaps the most striking number from the report was 16—that’s the number of long-term supply deals Micron has locked in, guaranteeing approximately $100 billion in revenue. That eases fears that the current sky-high prices and margins are unsustainable.
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Micron said that once all the supply deals are executed, agreements with either fixed prices or price ceilings close to current levels are expected to represent around 40% of its revenue. Meanwhile, the contracts also come with price floors which the company says will enable gross margins “well above” its peak in any past cycle.
As the stock surged, Wall Street analysts were scrambling to keep up by aggressively hiking their price targets.
“We posit that Micron has entered an era where it has some of the semi industry’s best visibility, a far cry from its historical role in the semi market,” D A Davidson analyst Gil Luria said. He hiked his price target to $2,000 from $1,500 in a note titled ‘New Era in Memory.’
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KeyBanc’s target hike was even more dramatic, jumping to $1,600 from $600. “We believe Micron deserves to be further rerated,” John Vinh said in a note.
Wedbush analysts described Micron earnings as delivering a “much needed drop the mic quarter to alleviate memory concerns.”
“We are seeing no cracks in AI demand on the chips/ hardware or software front which gives us a bright green light to own the core tech winners into year-end,” they added.
“This print is a major validation of the memory supercycle thesis but I wouldn’t value Micron by simply annualizing peak margins forever,” Futurum chief market strategist Shay Boloor said. “The right takeaway is not that cyclicality has disappeared but that normalized earnings power has likely moved much higher and the next downside cycle may be better protected than investors historically assumed.”
Micron’s report was good news for its South Korean rivals. SK Hynix
000660\ \ -4.25% rose 13% in local trading, while Samsung Electronics climbed 5.3%.
But it wasn’t so good for semiconductor stocks more broadly—Intel
INTC*
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**+0.93%, Marvell MRVL*
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**+1.65% and Advanced Micro Devices AMD*
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**+2.47% were all trading in the red on Thursday.
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Write to Adam Clark at adam.clark@barrons.comExternal link
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