Micron's stock is trading near $911, up 189% in 2026. Wall Street analysts see roughly 70% more upside, with an average target near $1,569. But the rally has hit a rough patch, with the stock about 14% below its July high.
The earnings engine
Micron reported quarterly revenue of $41.46 billion, up from $9.30 billion a year earlier. DRAM revenue jumped 343%. AI servers need high-bandwidth memory, which eats capacity that would otherwise go to regular memory, tightening supply.
The supply squeeze
Micron expects memory industry tightness to continue beyond 2027. Suppliers have already booked much of their 2027 output. New factories take years to build, so supply can't catch up quickly. Micron signed 16 multi-year deals covering about 20% of its DRAM and a third of its NAND.
The skeptics
Not everyone is sold. Citi cut its target to $1,150 on August 10, warning of fading margins. Melius sees $2,200. TipRanks shows a Neutral score despite 29 Buy ratings, as hedge funds trim shares and insiders sell. Competitors Samsung, SK Hynix, and China's CXMT are expanding output.
The chart
The stock formed a head-and-shoulders pattern threatening a 34% drop, but support near $733 held and the neckline break failed. Bernstein reiterated a bullish call in late July. Now, Micron must hold $904 to keep the recovery alive. Above $965 opens the path to $1,010. Below, support sits at $839 and $786.
The next test is $965. If the stock clears that, the path to $1,010 opens. If it slips below $904, the recovery stalls.
