MU Stock Slides 2% After-Hours As Goldman Sachs Doubles Price Target But Keeps Neutral Rating

Goldman Sachs’s new price target, though more than double its previous, represents a potential downside of about 4% from the stock’s closing price on Tuesday.

• Micron is scheduled to report fiscal Q3 2026 results after market close on June 24.
• According to data from Fiscal AI, Wall Street on average expects the company to report quarterly revenue of about $34 billion and adjusted earnings per share of $19.47. 
• UBS, meanwhile, models MU Q3 earnings well above consensus estimates.

Goldman Sachs analyst James Schneider on Tuesday more than doubled the firm’s price target on Micron Technology Inc. (MU) to $900 from $400 while maintaining a ‘Neutral’ rating on the shares, just weeks before the memory-chip giant is set to report fiscal third-quarter results.

The new price target, however, represents a potential downside of about 4% from the stock’s closing price on Tuesday, sending MU shares down 2% after hours.  

Why Goldman Is Neutral

In a research note issued on Tuesday, Schneider highlighted expectations for another strong quarter that would underscore the extension of tight supply-demand dynamics in the memory market through at least 2027. He noted that investor positioning remains very bullish despite the stock’s dramatic run-up, fueled by optimism around long-term customer agreements that have locked in volumes and pricing for high-bandwidth memory (HBM) and other AI-critical chips.

Micron is scheduled to report fiscal Q3 2026 results after market close on June 24. The company guided for revenue of $33.5 billion (± $750 million) and adjusted earnings per share of $19.15 (± $0.40) when it reported its Q2 results in March. The outlook reflects explosive demand for HBM used in AI data centers, particularly alongside Nvidia GPUs. Micron’s entire 2026 HBM supply is already sold out under multi-year contracts, providing strong revenue visibility amid what executives have described as a persistent shortage of advanced memory. The company has also been signing longer-term agreements that extend visibility into 2027 and beyond.

According to data from Fiscal AI, Wall Street on average expects the company to report quarterly revenue of about $34 billion and adjusted earnings per share of $19.47.

UBS Sees 74% Upside

Not all analysts share Goldman Sachs’s cautious approach. Earlier on Tuesday, UBS analyst Timothy Arcuri offered a more bullish take on the upcoming earnings. He models Micron’s fiscal Q3 report at $36.0 billion in revenue and $20.96 of earnings per share—well ahead of the company’s guidance. The upside is all driven by better pricing, the analyst told investors in a research note.

UBS says its latest round of industry checks shows Micron’s pricing continues to move higher. It is “only a matter of time before the market assigns MU a more normal multiple as details emerge around the structural changes AI has driven across the entire memory complex,” the firm contends. It keeps a ‘Buy’ rating on Micron shares with a $1,625 price target, which represents a further upside of about 74% from Tuesday’s close.  

How Did MU Retail Traders React?

On Stocktwits, retail sentiment around MU stock stayed within the 'neutral' territory over the past 24 hours, while message volume jumped from 'low' to 'normal' levels.

A Stocktwits user voiced optimism for the AI ecosystem supporting Micron, in addition to players including SanDisk and Arm Technologies. “Memory, processors, architecture, and compute all need to scale together,” they said.

https://www.stocktwits.com/MarketMaestro1/message/655941662

MU stock has gained over 700% this year. 

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