Micron’s Strategic Pivot Fuels Analyst Optimism for AI-Driven Growth

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A wave of bullish sentiment is sweeping through Wall Street regarding Micron Technology, driven by a profound strategic shift and soaring expectations for artificial intelligence hardware. The memory chip manufacturer is receiving significant price target upgrades from major financial institutions, with analysts pointing to a structural, long-term demand cycle for advanced AI memory solutions rather than a temporary spike.

This optimism crystallized at the start of the week as several prominent firms substantially raised their valuations for Micron's stock. In the most aggressive move, Susquehanna Financial Group lifted its price target to $300, a sharp increase from a previous $200. Wolfe Research aligned with this view, also setting a $300 target. Meanwhile, BofA Securities upgraded its objective to $250 from $180, though it maintained a "Neutral" rating for the time being.

The consensus among market experts is that demand for High Bandwidth Memory (HBM) from data centers represents a fundamental shift. They anticipate that constrained supply for DRAM and NAND memory will support selling prices robustly through 2026.

Exiting Consumer Markets to Double Down on AI

Further bolstering confidence is Micron's confirmed strategic exit from the direct-to-consumer segment. The company will phase out its Crucial brand by February 2026. This decisive move allows Micron to reallocate production capacity away from lower-margin consumer products and toward highly profitable enterprise and AI solutions.

The company’s intense focus on generative AI, where memory bandwidth is as critical as raw processing power, appears to be delivering results. Micron's shares have surged more than 145% since the beginning of the year, significantly outperforming the broader semiconductor sector. The stock currently trades near 209 euros, hovering just below its recent 52-week high.

Upcoming Earnings in the Spotlight

Investors are now looking ahead to the next major catalyst: the release of Micron's fiscal first-quarter 2026 results. The report is scheduled for Wednesday, December 17, 2025. Market expectations are for revenue to land between $12.6 billion and $13.2 billion. All eyes will be on the shipment volumes for its HBM3E products and the gross margin guidance for the coming year, which will be key indicators for validating the current high expectations.