Wells Fargo raised its price target on Micron Technology to $1,220 from $550, citing AI-driven demand for high-bandwidth memory and tight industry supply. The upgrade joins a wave of bullish calls from Wall Street as the memory supercycle continues to accelerate.
Wells Fargo raised its price target on Micron Technology Inc. to $1,220 from $550, implying about 36% upside from the stock's current level near $900.
The bank cited sustained AI-driven demand for high-bandwidth memory and tight industry supply as the primary drivers, a Wells Fargo analyst said in a note Monday. The analyst pointed to strengthening average selling prices and growing confidence that elevated margins are sustainable, not temporary.
The new target joins a wave of upgrades from Wall Street firms. Susquehanna lifted its target to $1,750, Morgan Stanley to $1,050 and Raymond James to $1,100. UBS raised its target to $1,625 in late May, arguing that new long-term memory supply deals will keep prices high and profits stable. HSBC and Melius both moved their targets to $1,100, while Citi boosted its target to $840. The consensus rating among 41 analysts covering Micron is "Strong Buy," with a Street-high target of $1,750 implying roughly 100% potential upside from current levels.
Micron shares have surged about 750% over the past 52 weeks, climbing from below $300 to trade near $900. The stock has gained more than 260% year to date, pushing its market capitalization past $1 trillion. The rally has been fueled by the memory supercycle driven by AI infrastructure spending, with Micron's high-bandwidth memory chips becoming a critical component in AI data centers powering large language models and cloud AI platforms.
The company reported record fiscal second-quarter revenue of $23.86 billion, nearly triple the year-ago figure of $8.2 billion. Adjusted earnings per share came in at $12.20, up from $1.56 a year earlier. Free cash flow reached about $6.9 billion, and the company ended the period with roughly $16.7 billion in cash. For the current quarter, Micron guided for about $33.5 billion in revenue with gross margins of roughly 81% and adjusted EPS of about $18.90, implying another record-setting quarter.
Micron's entire 2026 high-bandwidth memory capacity has already been fully allocated, with the company fulfilling about 50% to 60% of key customers' medium-term demand. The company recently began production of 1-alpha DRAM at its plant in Manassas, Virginia, the most advanced memory ever made in the United States. Micron was also added to the S&P 100 Index earlier in 2026, bringing new buyers from index funds.
The upgrade from Wells Fargo positions Micron among the most bullish calls on Wall Street. Analysts expect fiscal 2026 earnings of $58.79 per share, up 665% year over year, and fiscal 2027 earnings of $102.26 per share. The stock trades at about 18.4 times forward earnings, below the sector median, suggesting room for further multiple expansion if the company sustains its growth trajectory. Investors will watch the company's fiscal third-quarter earnings report on June 24 for updated guidance on margins and capacity expansion.
This article is for informational purposes only and does not constitute investment advice.
