Micron Stock Levels Off After Best Quarter Ever as Analysts Eye More Upside
Mondeum Capital (UK) Limited
Micron shares were mostly unchanged or slightly down early Tuesday, taking a break after a record quarter that pushed the stock up 232% this quarter and more than four times higher in 2026 so far. Shares slipped 0.3% to $1,141.51 in premarket trading. Analysts still see reasons for the rally to continue, even after such a big run.
The stock has attracted a lot of attention from retail investors, which has made its recent moves even more volatile. The main risk is the memory chip industry’s pattern of boom and bust cycles. Now, people are watching the large new manufacturing projects that SK Hynix and Samsung announced in South Korea this week. In the past, new supply like this has often ended periods of high memory chip prices.
The positive outlook for Micron is based on changes to its business model. The company is signing long-term supply deals with minimum price guarantees, which management says should keep gross margins well above past highs. These contracts now make up about 40% of Micron’s revenue, and the company wants to grow that number. UBS thinks this means Micron expects to keep gross margins between 70% and 75%. While that’s lower than the 85% margin from last quarter, it’s still much higher than the previous peak of about 62% in 2018.
UBS has set a $1,625 price target for Micron, making it one of the most optimistic forecasts on Wall Street. The average analyst price target from FactSet is $1,543. This shows that many analysts believe the current pricing is part of a lasting change, not just a temporary jump that will disappear when new supply comes online.
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