Micron Technology Inc. (NASDAQ: MU) shares were down 1.32% at $1,068 in Monday premarket trading at about 8:36 a.m. ET, even as two Wall Street firms issued fresh commentary pointing to stronger memory-market conditions ahead of the company’s fiscal fourth-quarter results.
The move followed Friday’s regular-session close of $1,082.28, when Micron gained 0.16%.
Baird Focuses on AI CPU Demand and 2027 DRAM Supply
Baird increased its Micron price target to $1,520 from $1,280 while maintaining its Outperform rating, citing stronger demand tied to agentic AI, a projected slowdown in industry DRAM supply-bit growth in 2027, and an improved margin outlook for high-bandwidth memory next year.
Specifically, the firm models roughly 40% industrywide growth in AI CPU units in 2027. It also expects total DRAM bit growth to exceed 30% in 2026 before slowing to about 20% in 2027, including HBM. Baird projects HBM bit growth in roughly the 60% range year over year and said it had increased its DRAM pricing assumptions for the second half of 2026.
Micron itself said in June that industry DRAM and NAND supply-demand conditions were expected to remain tight beyond calendar 2027.
JPMorgan Expects Micron to Top Consensus Estimates
Separately, JPMorgan maintained its Overweight rating and $1,540 price target. The firm expects Micron’s August-quarter revenue, gross margin and earnings per share to exceed consensus estimates of $51.4 billion, 86.2% and $31.73, respectively.
JPMorgan said pricing momentum remained robust during the quarter. Micron had previously said its fiscal Q4 gross-margin outlook incorporated a meaningful moderation in the pace of price increases. JPMorgan said that moderation reflected an effort to preserve customer relationships and secure longer-term commitments under Micron’s Strategic Customer Agreements (SCAs), rather than weakening demand.
Micron’s own fiscal Q4 guidance, issued in June, called for revenue of $50.0 billion, plus or minus $1.0 billion, gross margin of approximately 86%, and non-GAAP diluted EPS of $31.00, plus or minus $1.00.
JPMorgan also expects Micron to raise its November-quarter guidance, citing stronger aggregate customer demand signals, what the firm described as management’s tighter calendar-2027 outlook, and continued HBM4 ramp momentum. The firm estimates forward bit-production coverage under SCAs is in the 35%-plus range, compared with Micron’s previously disclosed roughly 20% of DRAM volume and one-third of NAND volume.
Micron is scheduled to hold its fiscal fourth-quarter financial call on Wednesday, Sept. 30, at 2:30 p.m. Mountain Time, or 4:30 p.m. ET.
Micron Tokenized Stock Also Trades Lower
Away from the Nasdaq-listed shares, Micron Technology Tokenized bStocks (MUB) was trading at $1,064.28, down 2.61% over the previous 24 hours. According to CoinMarketCap, the tokenized product provides economic exposure to Micron shares and is backed by the corresponding underlying equity. The token’s 24-hour decline does not establish a causal link to MU’s pre-market move.
Be the first to comment