Micron Shares Maintain Upward Trajectory on Strategic Shifts and Analyst Confidence

Micron US5951121038

The rally in Micron Technology's stock continues to gather momentum, supported by substantive analyst upgrades and a clear strategic pivot. On Friday, the company's equity closed at $237.22, marking a single-day gain of 4.7% and fully recovering from a recent weekend pullback. This strength is attributed to concrete factors: improving pricing dynamics in the memory chip sector and a pronounced strategic realignment toward AI and data center markets.

A key development underpinning market sentiment is Micron's decision to exit the consumer business under its Crucial brand. Initially causing some uncertainty, this move is now being interpreted by investors as a decisive strategic cut. The freed-up manufacturing capacity is being redirected toward higher-margin data center and AI solutions. The message is unambiguous: Micron is prioritizing the enterprise segment, willingly forgoing stable but lower-margin revenue streams in the process.

Analyst Upgrades Reflect Improved Fundamentals

Significant adjustments from major financial institutions have fueled the positive momentum. Mizuho Securities took action on Friday, raising its price target to $270. Their analysis focuses on margin expansion, projecting that gross margins for standard DRAM could surpass those of High Bandwidth Memory (HBM) by early 2026. This outlook highlights a nuanced view: while HBM for AI applications is a major growth driver, its manufacturing is complex. Mature production processes for standard DRAM, coupled with broader market tightness, could allow Micron to profit from both segments simultaneously.

Further reinforcing this view, Goldman Sachs revised its 12-month price target upward from $180 to $205 on Sunday. The firm's researchers cited enhanced pricing trends in the memory market as the primary rationale. Their revenue estimates for calendar years 2026 and 2027 were increased by nine percent, with non-GAAP earnings per share expectations lifted by a more substantial 19 percent. Despite these bullish adjustments, Goldman maintained a "Neutral" rating, indicating recognition of growth dynamics alongside skepticism about the durability of the current price cycle and ongoing competition from SK Hynix and Samsung.

All Eyes on the Upcoming Earnings Report

The next major test for the stock's narrative arrives on December 17, when Micron is scheduled to release its first-quarter results for fiscal 2026. The market will scrutinize whether the company's performance, particularly regarding HBM yield and annual guidance, aligns with the elevated analyst expectations. From a technical perspective, the share price has made a statement by reclaiming the $237 level. Should the current momentum persist, the next significant resistance point to watch is near the $240 mark.