Bank of America has endorsed Micron (MU) as a top investment idea, sending shares up as much as 10%. Analyst Vivek Arya raised his price target to $1,550, calling the recent chip pullback a “summer reset” and implying over 70% upside. The endorsement follows a strong fiscal Q3 2026 report, where revenue hit $41.46 billion, up 345.72% year-over-year. Non-GAAP diluted EPS of $25.11 beat consensus by 23.79%. Wall Street projects 172% annual earnings growth over five years, driven by AI demand for high-bandwidth memory. The stock trades around $925 with a market cap exceeding $1 trillion.
Bank of America has identified Micron as one of the “best investment ideas” on the stock market. Analyst Vivek Arya raised his price objective to $1,550 from $1,500 and reiterated a Buy rating, citing “another memorable beat.”
Arya framed the recent chip pullback as a “summer reset” rather than a fundamental reversal. The call implies over 70% upside from the stock’s current price of $958.70.
Other major firms have also issued bullish forecasts for Micron. TD Cowen moved its target to $1,500, and the Street consensus target stands at $1,491.95, with 31 Buy and 9 Strong Buy ratings against a single Strong Sell.
The company’s fiscal Q3 2026 report showed revenue of $41.46 billion, up 345.72% year over year from $9.30 billion. GAAP net income was $28.24 billion, an increase of 1,398.3%.
Non-GAAP gross margin reached 84.9%, with GAAP gross margin at 84.6% compared to 37.7% a year ago. Non-GAAP diluted EPS of $25.11 topped the $20.28 consensus by 23.79%, marking the eighth straight quarterly beat.
Cloud Memory generated $13.77 billion in revenue, while Core Data Center and Mobile and Client each contributed $11.52 billion. The Automotive and Embedded segment added $4.63 billion.
Micron shares have climbed 715% over the past year and stand 223% higher year-to-date. The stock trades around $925 after hitting above $1,000 last month, pushing its market capitalization past $1 trillion.
Wall Street forecasts Micron will grow earnings at 172% annually over the next five years. This growth stems directly from AI workloads demanding far more high-bandwidth memory than the industry can supply.
As stated, Micron stock rose 6% in pre-market trading following the announcement.
