Micron Stock Just Got a New Street-High Price Target. Should You Buy MU Now?

Micron (MU) continues to garner positive sentiment ahead of its Q2 earnings next week. Brokerage firm GF Securities just upped its price target on the stock to $571. In a note to clients, analyst Jeff Pu reasoned “We now forecast DRAM contract prices to rise by 100% in 1Q26, followed by >30% QoQ in 2Q26 with further upside given current asking prices in 50-60% range. For Micron, we forecast FY2Q26 revenue to be $23B with [a] gross margin of 77%. Looking ahead, we expect 3Q26 revenue guidance to be $29B and a margin further [to] grow to 83%. In terms of HBM development, we see Micron [sic having] secured its HBM4 order (likely ~10Gbps version) with [a] small patch starting [in] March.”

Not just that, Pu reckons that the demand-supply mismatch scenario will continue to prevail until at least 2027, stating, “Meanwhile, AI-related demand is expected to account for 75+% DRAM demand in 2027, and the short supply may last into 2H27. As [a] result, [the] memory maker’s visibility has greatly improved, and we see 3-5 years [long-term agreements] are now being negotiated.”