Micron's earnings report was phenomenal, but its stock price remained unmoved! Wall Street remains bullish, with the highest target price reaching $1625.

Micron's earnings report was phenomenal, but its stock price remained unmoved! Wall Street remains bullish, with the highest target price reaching $1625.

Micron Technology's latest quarterly earnings report exceeded Wall Street expectations across the board, but due to its significant prior gains, its stock price showed little reaction in pre-market trading. Nevertheless, Wall Street investment banks generally remain optimistic about the chipmaker's long-term profitability in the wave of artificial intelligence.

Financial reports show that Micron Technology's fourth-quarter revenue reached $54.23 billion, nearly four times that of the same period last year, with adjusted earnings per share of $33.42, both beating market consensus. Meanwhile, the company provided strong guidance for the first fiscal quarter, projecting approximately $61.5 billion in revenue and $38.15 in earnings per share.

Despite strong earnings and guidance, Micron Technology's stock price barely moved in pre-market trading following the earnings release. This lackluster performance contrasts sharply with the stock's strong performance this year, having surged 237% year-to-date in 2026, driven by a surge in demand for memory chips fueled by accelerated AI applications.

Faced with a short-term stagnation in its stock price, several top Wall Street investment banks quickly reiterated their bullish ratings on Micron Technology. Analysts generally believe that the increase in long-term strategic customer agreements and the structural supply-demand tension in the memory chip market will provide solid upside potential for the stock.

AI demand drives a solid long-term fundamental outlook.

Since 2026, Micron's stock price has surged this year, driven by a sharp increase in storage demand fueled by the accelerated adoption of artificial intelligence. Deutsche Bank believes that this strong market demand is expected to continue to strengthen in the near future, further boosting Micron's stock price.

In a report to clients, Deutsche Bank analyst Melissa Weathers noted that the overall fundamentals of the storage industry remain structurally very solid for the foreseeable future. She stated that while the narrative for the storage sector may continue to fluctuate in the current AI environment, Micron's unique drivers and strong supply and demand dynamics will support its cross-cycle profitability, far exceeding historical trends.

Based on this, Deutsche Bank maintained its "buy" rating on Micron and gave it a target price of $1,550, which implies an upside of nearly 46% from Wednesday's closing price.

Strategic customer agreements enhance profitability visibility

Wall Street institutions are widely noting Micron's substantial progress in securing long-term customer demand and pricing power.

Bank of America notes that with updates to high-bandwidth memory pricing agreements and the expansion of Strategic Customer Agreements (SCAs) from 16 to 26 last quarter, management's visibility into quarterly sales and gross margin expansion in fiscal year 2027 is significantly improving. The bank maintains its "Buy" rating and $1,550 price target, and expects memory chips to capture more value in 2027 and beyond.

Goldman Sachs added that Micron signed 10 new long-term agreements, totaling approximately 35% of its projected revenue for fiscal year 2030, with about 75% of these agreements including structured pricing frameworks. Goldman Sachs believes these agreements are positive for the share price and will help increase the valuation multiple investors are willing to pay for "peak" earnings.

JPMorgan Chase also emphasized that the expansion of strategic customer agreements, the upward revision of expectations for tight supply and demand, and the clarification of capital return strategies together constitute Micron's strong profit logic for many years to come.

Wall Street consensus is bullish, with a maximum target price of $1625.

Despite Goldman Sachs' warning that higher investor expectations and slight downward pressure on gross margins might partially offset the impact on the share price, major Wall Street investment banks maintained positive ratings for Micron. UBS, in particular, gave the highest price target on Wall Street at $1625 and maintained its "buy" rating.

UBS expects the market to eventually assign the stock a higher price-to-earnings ratio, with Micron's gross margin floor not expected to be lower than 65% to 70%. As storage is crucial in the AI world, higher returns on equity throughout the cycle will provide solid support for the share price.

Citigroup has given Micron a target price of $1,300. The agency emphasizes that the main constraint in the industry is currently cleanroom space, and Micron's capital expenditure plan for fiscal year 2027 is mainly for the construction of cleanrooms that will be operational by the end of 2028 and beyond, demonstrating the company's confidence in long-term demand trends.

In addition, Morgan Stanley gave it an "overweight" rating and a target price of $1,200, believing that although the company's sequential improvement has slowed, its business momentum remains strong and the sustainability of this cycle is still underestimated by some market funds.

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