Micron is set for a strong performance heading into the new year, according to Bank of America. Analyst Vivek Arya upgraded the memory chipmaker to buy from neutral. His $300 price target, up from $250, implies a gain of 33% from Wednesday’s close. Micron shares were up more than 11% in the premarket after the company posted fiscal first-quarter results that easily cleared expectations. On top of that, Micron issued much stronger earnings and margins guidance than the Street anticipated. “We are changing our view about 1) durability of the memory cycle (persists into CY26E on restrained supply additions and AI demand and [high bandwidth memory] 3x by CY28E), and 2) quality of MU’s balance sheet (30% FCF margin, net cash positive, can start to buyback stock significantly in another year as Chips Act requirements get over),” Arya wrote. MU 5D mountain MU 5-day chart Micron shares have surged nearly 168% in 2025, as memory chip demand for artificial intelligence shows no signs of slowing. However, there are risks to Micron’s outlook going forward, Arya pointed out. “While mgmt. expects overall favorable pricing environment for both DRAM/NAND throughout 2026 and into early 2027, the current abnormally high spot price ($25-50 DDR4/5) is likely to converge closer toward contract (sub-$10), potentially creating volatility for memory stocks,” he said. Most analysts covering Micron are bullish on the stock. LSEG data shows that 40 of 46 assigned it a buy or strong buy. The average price target also points to a gain of more than 10%.
