Updated
Updated · CNBC · Oct 1
Analysts Lift Micron Target to $1,200 as FY2027 Outlook Tops Estimates
Updated
Updated · CNBC · Oct 1

Analysts Lift Micron Target to $1,200 as FY2027 Outlook Tops Estimates

3 articles · Updated · CNBC · Oct 1

Summary

  • Micron’s blowout quarter and stronger fiscal Q1 guide prompted analysts to raise their price target to $1,200 from $1,100 while reiterating a buy-equivalent rating.
  • Revenue jumped 379% year over year to $54.23 billion and adjusted EPS surged 1,002% to $33.42, both above LSEG consensus, as AI-driven memory demand kept outstripping supply.
  • For fiscal Q1 2027, Micron forecast $61.5 billion in revenue and $38.15 in adjusted EPS, both ahead of expectations, while saying gross margin should bottom near 86.25% before improving.
  • Supply tightness looks durable: about 75% of Micron’s 2027 output is already committed, strategic customer agreements rose to 26 from 16, and some deals are being extended to 2031.
  • The company is boosting fab investment to meet demand, and easing CHIPS Act buyback limits in December could open room for a large repurchase program backed by strong free cash flow.

Insights

Is Micron’s AI memory boom the start of a new era of chronic chip shortages, with supply already being locked in through 2028 and beyond?
If Micron’s HBM and DRAM output is largely pre-committed, who gets squeezed next—cloud giants, automakers, or everyday tech buyers?