Street View: AI demand positions Micron for extended upside

Shares of memory chip-maker Micron Technology MU.O surge 11.2% $250.70

Co expects Q2 adj. EPS of $8.42, plus or minus 20 cents, versus avg. analyst est of $4.78 - data compiled by LSEG

Q1 adj. EPS came in at $4.78, vs ests of $3.95

As of last close, MU has more than doubled this year

AI LIFTS EARNINGS POWER

JP Morgan ("overweight," $350) says MU's earnings strength reflects a structural shift driven by AI; argues that even with execution on node transitions and efficiency, supply growth cannot keep pace with AI-led demand, supporting sustained pricing gains and margin expansion

Piper Sandler ("overweight," $275) argues that expected supply growth is "not enough to alleviate industry shortages," allowing pricing to remain elevated and prompting it to sharply raise its revenue and EPS forecasts

Citigroup ("buy," $330) says Micron's results and guidance points were driven by unprecedented DRAM (dynamic random access memory) pricing tied to AI-workloads

"We believe more upside is coming as DRAM pricing should increase 12% QoQ in 1Q26 and continue to increase the rest of C26"

Morgan Stanley ("overweight," $350) says this is "the most rapid inflection we have seen in 32 years of covering memory stocks"

Says multiyear contracts, widespread allocation and tight supply across both premium and mainstream DRAM were supporting durable pricing power