U.S. chipmaker Micron (NAS100:MU) is in focus this week as the company releases its first-quarter earnings.
MU – Daily Chart
MU’s price lost ground on Thursday and Friday but was still up 5%. There is a double-top risk at the $256.77 level.
Micron will release its fiscal Q1 earnings report on Wednesday after the bell, and that will leave the stock at the mercy of a weaker tech market. The stock hit a new all-time high recently, due to strong Wall Street optimism. However, after a 100% surge in the past six months, short-term upside may be limited despite continued bullish sentiment.
For Q1 FY26, analysts expect Micron to deliver earnings of $3.93 per share, up from $1.79 per share in the same quarter last year. Revenue is projected at $12.82 billion, reflecting a 45% year-over-year increase.
Analyst Ricky Seo at HSBC has initiated a Buy rating on MU stock with a $330 price target. Seo believes that concerns about Micron’s financial risks from new competitors and the Stargate Project are overdone. He says now is a good time to buy the stock, even though it has already outperformed this year, as there is “plenty of room for further growth.”
UBS analyst Timothy Arcuri also raised his price target on the stock to $295.00 while maintaining a “Buy” rating. The analyst sees stronger DRAM/NAND product pricing, tightening supply, and pre-purchase orders as drivers of long-term margin expansion.
Arcuri expects fourth-quarter 2025 industry contract pricing for DDR memory to increase an estimated 35% quarter over quarter, up from the previous 21% increase. Meanwhile, NAND pricing is also likely to rise 20% quarter over quarter, up from previous projections of 15%. With these strong pricing trends, the firm forecasts that first-quarter 2026 contract pricing for DDR memory will increase another 30% quarter over quarter and that NAND pricing will rise 20%.
Prices across different memory types are also likely to rise due to supply constraints. A significant “undersupply” in DRAM and NAND memory is projected to last until the first quarter of 2027 and the fourth quarter of 2026. As a result, customers may secure volume and contract pricing earlier in the quarter.
“We flag an even stronger pricing environment in both core DRAM and NAND than we had previously assumed,” Arcuri wrote. “Against this backdrop of tightening supply, we walk EPS estimates higher yet again and see EPS of ~ $38 out in C2027E, justifying a PT of $295 (up from $275)”.
The analyst left his revenue and earnings expectations for Micron’s fiscal first quarter unchanged, believing that the estimates were “well ahead of the company’s guidance and practically all driven by better pricing.
