Bank of America resets Micron stock price target after earnings

Micron (MU) stock closed the June 25 trading session up 15.81% at $1,213.56. The stock soared following the release of the third-quarter (Q3) fiscal year 2026 (FY26) earnings report on June 24.

The stock is up 313.14% year-to-date, at the time of writing, Friday afternoon, June 26. Meanwhile, the SPDR S&P 500 index (SPY) is up about 7.74% in the same period.

The third-largest supplier of memory chips has outpaced the S&P 500, thanks to its participation in the broader semiconductor rally driven by the AI boom.

Positive news driving Micron’s stock includes:

Intel’s first-quarter earnings boosted confidence in the semiconductor sector.
Bank of America revised its semiconductor industry forecast.
Micron confirmed that it had started 1-alpha (1α) DRAM manufacturing at its Manassas, Virginia, fab.

Analysts have been resetting their price targets just before earnings, Bank of America included. Now that the earnings have dropped, Bank of America has raised its price target again.

The real strength of Micron’s Q3 earnings report

Micron reported revenue of $41.46 billion, with a huge 73.76% quarter-over-quarter (QoQ) growth and an impressive 345.8% year-over-year (YoY) growth.

GAAP net income increased almost 1400% year over year, hitting $28.24 billion, or $24.67 per diluted share.

Memory stocks are known for suffering from boom-and-bust cycles. The AI data center build-out and huge capital expenditure plans from hyperscalers have created an abnormally long boom part of the cycle for memory stocks.

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Many investors are worried about how long the cycle can last and what would happen if the AI bubble bursts. Long-term risk for Micron would be a slowdown in data center infrastructure spending. If data center expansion winds down, so does the demand for Micron’s HBM.

Micron has made moves to improve revenue visibility. The company has confirmed that it has completed 16 strategic customer agreements (SCAs) with customers across the data center, consumer, and auto market segments.

Sumit Sadana, executive vice president and chief business officer at Micron, said on the earnings call that these SCAs cannot be canceled and are structured as take-or-pay agreements.