TD Cowen has reiterated its 'Buy' rating for Micron Technology (NASDAQ: MU), maintaining a price target of $1,600, which indicates a potential upside of 63% from the current stock value of $979.
Analyst Krish Sankar expressed confidence in Micron's long-term growth prospects, citing strong demand for memory products and ongoing supply constraints anticipated to last until at least 2027. This assessment follows discussions with Micron's leadership, including CEO Sanjay Mehrotra and CFO Mark Murphy, which reinforced the company's positive outlook.
Industry Fundamentals and Growth Drivers
TD Cowen highlighted favorable industry fundamentals, noting that persistent physical production limitations are impacting supply while demand remains robust across critical end markets. A significant part of the firm’s analysis revolves around the Supply Constrainment Agreements (SCAs) that provide clients with guaranteed access to memory products while enhancing Micron's revenue predictability. TD Cowen estimates that approximately 50% of Micron's revenue could ultimately be secured through these agreements, promoting long-term pricing stability and profitability.
Furthermore, the DRAM market remains tight, with industry checks indicating that average selling prices may rise by over 15% in the current quarter. Continued demand for high-bandwidth memory (HBM), DRAM, and NAND products is driven by escalating artificial intelligence infrastructure investments.
Wall Street's Consensus on Micron Stock
Consensus estimates from 30 Wall Street analysts, as reported by TipRanks, reflect a 'Strong Buy' rating for Micron, with 29 buy recommendations, one hold, and no sell ratings. The average 12-month price target is approximately $1,564, with estimates ranging from a low of $1,100 to a high of $2,200.
Micron has been a significant beneficiary of the AI-driven memory demand surge. The company has reported exceptional gains over the past year, recovering from lower levels to trade near $1,000, although its shares have faced volatility recently in light of broader semiconductor market conditions.
For the third quarter of 2026, Micron posted a revenue of $41.46 billion, representing a staggering 346% increase year-over-year, while adjusted earnings per share were $25.11, surpassing analyst forecasts. Additionally, management shared an optimistic guidance for the fourth quarter, projecting revenue around $50 billion, underscoring ongoing business momentum.
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