Barclays Raises Micron Price Target to $675

Barclays analyst Tom O’Malley raised the price target on Micron Technology (NASDAQ: MU) to $675.00 (from $450.00) while maintaining an Overweight rating.

“Blowout quarter and guide bolstered by an extremely tight supply/demand outlook for both DRAM and NAND through CY26.

Highlights from the call include the announcement of the company’s first 5yr SCA (vs.

LTAs of typically 1yr) providing further stability and visibility, along with a significant increase in FCF as mgmt expects cash flows to double Q/Q in FQ3 ($5.5B in FQ2, we model $13.7B in FQ3) despite capex in FQ3 being ~$7B.

Additionally, mgmt noted that key customers continue to only be able to fulfill 50-67% of their demand in the medium term, suggesting that the pricing environment will continue from here.

This directly impacts consumer end markets where the company sees PC and smartphone units declining LDD% in CY26.

We flag that mgmt announced a plan to begin construction of a 2nd similar-sized cleanroom at the Tongluo site (recently acquired from PSMC) by the end of FY26. This new cleanroom will be for DRAM.

Lastly, when asked about implications of the Groq LPU and its use of SRAM (announced at NVDA GTC this week), the company pointed to it as additive to the memory market as further developments in AI only increase demand for standard racks like Vera Rubin, where HBM/DRAM content continues to grow.

Ultimately, we think this name was uncoupled from the reality of the pricing environment and this print will likely shake the Street into reality.

We see no indication of this train slowing down in the near term.”

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