Raymond James Raises Micron Price Target to $530

Raymond James analyst Melissa Fairbanks raised the price target on Micron Technology (NASDAQ: MU) to $530.00 (from $310.00) while maintaining an Outperform rating.

“We reiterate our Outperform rating on Micron and raise our price target to $530 following February quarter results.

Not surprisingly, the company delivered monster upside on both the print and guide – which we believe even met or exceeded more aggressive buyside expectations.

Notably, MU saw record revenue across all businesses, record margins, and record FCF.

As we’ve written before, it’s nearly impossible to accurately model forward expectations, given exceptionally strong demand – led by AI – tight supply, and record industry pricing environment.

That said, with gross margin guided to 81% for F3Q (+600 bp q/q), management noted further price increases would have a diminished impact on margin expansion, though the fall-through to the bottom line and cash flows will continue to grow on strong top-line growth.

Though capex is now expected to exceed $25 billion in FY26, with the bulk of the spend targeted for construction (new clean room builds) rather than equipment, a meaningful increase in capacity isn’t expected until the FY28 timeframe – likely keeping pricing at or above current levels.

Net, with a growing exposure to AI datacenter / hyperscale builds and increasing memory / storage needs, we continue to believe MU shares will continue to deliver upside, and maintain our Outperform rating.”

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