Reviving AI Confidence! Wall Street Hails Micron Earnings: One of the Biggest Surprises in U.S. Chip History

 

After weeks of market gloom triggered by AI bubble fears, U.S. tech stocks got a rare boost on Thursday — largely thanks to Micron Technology’s latest earnings report.

One of the Biggest Surprises

The latest results showed Micron’s Q1 performance and full-year guidance beating analyst expectations, sending shares up as much as 14% intraday Thursday and closing over 10% higher. Wall Street analysts widely praised Micron’s results as one of the biggest surprises in the semiconductor sector.

 

Morgan Stanley analysts wrote: “Aside from Nvidia, this may be one of the largest revenue/net profit growth events in U.S. semiconductor history.” The bank reiterated Micron as a top pick and raised its target price to $350 — implying ~38% upside.

 

Most other Wall Street analysts echoed Morgan Stanley’s view. For example, Bank of America wrote in its latest report:

 

“We raised our FY2026/2027/2028 EPS estimates by 62%/80%/42%, implying FY2026/2027 EPS of $37.25/$37 — over 70% above prior forecasts.

 

We upgrade the stock from ‘Neutral’ to ‘Buy’. Target price raised from $250 to $300, based on 2.3× 2027 P/B — a mid-cycle level where strong memory demand offsets more moderate future model leverage.”

Boosting Bull Confidence in U.S. Tech

Recently, the market has been far less enthusiastic about the AI trade, with names like Oracle and CoreWeave underperforming and becoming poster children for AI bubble fears.

 

But Micron’s results gave bulls a shot in the arm, showing AI demand has not slowed.

 

Micron’s DRAM revenue grew 69% — particularly notable since DRAM is a key component in AI servers.

 

Mizuho Americas analyst Vijay Rakesh reiterated an “Outperform” rating on Micron and raised his target from $270 to $290. He noted DRAM prices have essentially doubled since last quarter.

 

BNP Paribas analyst Karl Ackerman is extremely bullish on Micron following this earnings blowout. He set a $270 target — implying 20% upside. He highlighted growth potential in both DRAM and NAND flash.

 

He said: “For calendar 2026, Micron expects industry DRAM and NAND demand to grow ~20% YoY… On supply, Micron expects its DRAM and NAND bit supply to increase 20%.”

 

Freedom Capital Markets Managing Director and Head of Technology Research Paul Meeks also predicts significant upside for Micron shares.

 

“My view may be contrarian, but I think AI infrastructure buildout will last at least another year, possibly two,” Meeks said. “This suggests room for earnings upgrades — current annualized EPS is ~$34. A $300 target looks achievable, perhaps even higher.”

 

Micron’s massive gains cap a stellar year for the chipmaker. Though often overshadowed by larger rivals like Nvidia and AMD, Micron has vastly outperformed both in 2025. YTD, Micron shares are up nearly 200%, versus Nvidia +28% and AMD +65%.