MU Stock Rallies Premarket After Blowout Q3 Report: JPMorgan Nearly Triples Price Target On AI Demand Boom

Micron reported record numbers for its fiscal third quarter and indicated that rapid growth will be sustained over the next few years.

• JPMorgan expects the MU stock to rise nearly 50% from its level just before the company issued third-quarter results.
• More analysts are expected to revise their price targets on MU on Thursday.
• Stocktwits sentiment for MU shifted to ‘extremely bullish’ from ‘bullish,’ as the stock jumped 17% in Thursday’s premarket session.

JPMorgan nearly tripled its price target on Micron Technology, Inc.’s shares to $1,540 from $550 on Thursday, and reiterated its ‘Overweight’ rating, after the memory chip giant’s record quarterly report.

Singling out Micron’s strong outlook and contract wins, JPMorgan said Micron has transformed from being a cyclical commodity producer to a multi-year contracted supplier with downside protection on revenue and margins.

More analysts are expected to revise their price targets on MU on Thursday. Micron stock extended its overnight gains to a 17% rise to $1,223.87 in Thursday’s premarket session. 

Just before the earnings report, Bank of America had bumped its Micron price target to $1,500, while Needham raised it to $1,550.

Micron Locking In Customers

Micron announced 16 contracts with a five-year term, up from just one in the second quarter, and said customers are willingly signing long-term supply agreements amid the prevailing shortage in memory components.

The 16 customers have committed $22 billion in orders spanning data center, consumer and automotive markets, with take-or-pay commitments, cash deposits, and pricing floors designed to lock in supply and protect margins.

Micron also said that remaining performance obligations - a key indicator of future contracted revenue - for the customer agreements it has entered into so far are around $100 billion.

“Our demand for HBM [high bandwidth memory], not just in '27, but even '28 is well above our ability to supply across all the different HBM flavors. And it's also true -- the same thing is also true, by the way, for non-HBM DRAM as well,” Micron Chief Business Officer Sumit Sadana said on the company’s analyst call. 

Micron’s Q3 Recap

Micron said revenue increased 346% to $41.46 billion last quarter, handily beating analysts’ expectations of $35.3 billion. Earnings came in at $25.11 per share, beating expectations of $20.28 per share. The report triggered a sharp rally in shares of peers SanDisk and Western Digital, as well as legacy chipmakers like Intel.

Analysts cheered the blowout performance, with particular praise for the durability of the demand.

MU Analyst, Retail View

Currently, 38 out of 43 analysts recommend ‘Buy’ or higher on MU stock, while four rate it ‘Hold’ and one rates it ‘Sell,’ per Koyfin. Their average price target of $1,047 nearly the same as the stock’s closing price on Wednesday.

On Stocktwits, the retail sentiment for MU shifted to ‘extremely bullish’ early Thursday, from ‘bullish’ the previous day, with 24-hour message volume rising 140%. The ticker was among the top five trending stocks on the platform in the premarket hours.

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