TLDR
- Wolfe Research upgraded Micron (MU) price target 43% to $500 from $350 before Q2 FY26 earnings on March 18.
- Chris Caso, the analyst, kept his Outperform rating while highlighting accelerating memory price momentum.
- DRAM pricing projected to climb approximately 100% year-over-year through 2026; NAND expected to gain roughly 95%.
- The firm’s updated model projects $94B revenue with $44 EPS for 2026, expanding to $125B revenue and $61 EPS by 2027.
- HBM plus DDR demand tied to Nvidia and Google infrastructure forecast to expand 124% in 2026 and 143% in 2027.
Wolfe Research analyst Chris Caso delivered a significant boost to his Micron Technology price objective on Tuesday, elevating it to $500 from $350 — marking a substantial 43% increase — while maintaining his Outperform stance.
The timing aligns with Micron’s upcoming Q2 FY26 financial results, set for release on March 18.
Caso holds the 110th position among more than 12,000 analysts monitored by TipRanks, boasting a 63% accuracy rate with an average 26.6% return per recommendation across one-year timeframes.
His investment case centers on a clear premise: memory chip pricing is accelerating beyond Wall Street’s consensus expectations.
Wolfe’s revised forecast anticipates DRAM pricing will climb approximately 100% year-over-year throughout calendar 2026, while NAND pricing should follow with gains near 95%. These represent substantial increases — and the firm attributes the momentum to artificial intelligence.
Artificial Intelligence Fueling Memory Expansion
Caso’s evaluation concentrated on requirements from Nvidia and Google infrastructure. His analysis examined both HBM and DDR memory specifications throughout their product pipelines extending to 2027.
The projections are remarkable. Total DDR and HBM utilization across these platforms should expand approximately 124% during 2026, followed by an additional 143% growth in 2027.
DDR5 is emerging as a crucial AI DRAM catalyst, the firm emphasized — extending beyond just HBM. This distinction is significant because it widens the overall market opportunity for Micron’s product portfolio.
Artificial intelligence applications are also demanding higher memory capacity per processor. As computational models scale upward, systems require additional memory for operation — and Micron provides substantial volumes.
Updated Financial Projections from Wolfe
Wolfe’s current model anticipates $94 billion in revenue and $44 earnings per share for Micron during calendar year 2026. Looking ahead to 2027, these figures rise to $125 billion in revenue with $61 EPS.
At the current trading level around $403, the stock represents approximately 6.6 times Wolfe’s 2027 EPS projection — a valuation the firm considers compelling given the anticipated growth path.
The firm also outlined an optimistic scenario. Should commodity DRAM pricing spike 150% year-over-year in 2026, revenue could reach $160 billion by 2027, with EPS touching $80. Interestingly, that 150% projection actually falls short of Trendforce’s current forecast — which stands at 166%.
Wolfe isn’t the only bullish voice. Aletheia Capital recently elevated its Micron objective to $650. UBS increased its target to $475, highlighting memory supply limitations stretching into 2028. Stifel established a $550 target, emphasizing surprisingly robust memory pricing and server DDR5 adoption.
Among 27 Wall Street analysts covering the stock, Micron receives a consensus Strong Buy rating — consisting of 26 Buys and one Hold. The average target price stands at $438.44, suggesting approximately 8.76% potential upside from present levels.
On the innovation front, Micron recently delivered customer samples of its 256GB SOCAMM2 modules — representing the highest-capacity LPDRAM server modules the company reports it has ever manufactured. These modules enable up to 2TB of LPDRAM per 8-channel server CPU.
