Micron just got a fresh and full reminder that in the artificial intelligence (AI) race, memory isn’t optional. Analyst’s bullish notes are landing, investors are seeing “higher DRAM demand” and “longer pricing power,” and the stock is, of course, not wasting time in response.
TD Cowen analyst Krish Sankar raised the 47-year-old Micron Technology’s (MU) price target to $1,500 from $660 on Monday, June 15. Sankar ranks 13 out of 12,304 Wall Street analysts, and his $840 increase is on a stock that has already returned 843% over the past year, Yahoo Finance confirms.
The firm maintained its buy rating and cited a $150 per-share earnings estimate for calendar year 2027 as the basis for the revised target, in a note shared with TheStreet.
MU closed at $1,087.99 on June 15, up 10.84% during the session, and is already trading above $1,128 in premarket activity on June 16, according to Yahoo Finance. The stock is up 281.36% year to date.
In fact, it’s the third-best performer in the S&P 500 so far in 2026, trailing only SanDisk at 811% and Western Digital at 308%, according to Slickcharts data.
The TD Cowen call is a structural argument about what memory means in the AI era, and the timeline for when that meaning shows up in earnings.
Also Read: Micron Technology Inc. Latest News and Updates
Why TD Cowen went for $1,500 Micron stock price target
The price target revision rests on two specific arguments that separate this call from a conventional memory cycle upgrade.
First, TD Cowen revised its view on the pricing timeline. The firm had previously expected some digestion in the first half of calendar year 2027.
That expectation has shifted. Why? CPU demand has led buyers to anticipate pricing strength to continue through the second half of calendar year 2027, according to the note.
Sankar now expects server pricing to peak around the third quarter of calendar year 2026, and in a typical DRAM cycle, memory stocks undergo an extreme boom-and-bust cycle characterized by massive price swings.
Here’s some previous coverage on Micron:
- Micron stock gets a shocking Wall Street price target
- Micron stock sends a strong signal amid chip shortage
- Morgan Stanley makes bold new call on Micron stock
The second and more important argument is this. TD Cowen explicitly stated that the role of memory in AI is structural rather than cyclical. Higher DRAM content per gigawatt — even after SOCAMM de-specing — means AI infrastructure buildout drives memory intensity that does not revert the way traditional server cycles do.
The $150 CY27 EPS estimate reflects that structural demand is embedded in Micron’s earnings power.
Other analysts are moving in the same direction. RBC Capital raised its target to $1,200, citing stronger pricing and volume in a DRAM upcycle now in its 12th consecutive quarter, Investing.com reports.
Aletheia Capital also moved to $1,600, switching to a price-to-earnings valuation framework based on 2027 projections, according to TipRanks. Wolfe Research raised its price target to $1,250 on anticipated DRAM and NAND pricing increases for 2026 and 2027, Yahoo Finance reports.
Micron’s Q2 2026 results showed financial power analyst community is pricing
The financial foundation for every one of these target increases is a set of Q2 fiscal 2026 results that, based on several metrics, set new records for the company.
Revenue reached $23.86 billion, up from $8.05 billion in the same period last year. GAAP net income came in at $13.79 billion, according to Q2 Fiscal 2026 earnings.
DRAM revenue hit $18.8 billion, up 207% year over year and representing 79% of total revenue in FQ2-26. NAND revenue reached $5 billion, up 169% year over year. Free cash flow of $6.9 billion was an all-time quarterly record, according to Micron‘s financial results presentation.
Micron set new records across revenue, gross margin, EPS, and free cash flow in fiscal Q2.
“In the AI era, memory has become a strategic asset for our customers,” Mehrotra continued.
Mehrotra also approved a 30% increase in the quarterly dividend. That’s a pure signal of management confidence that this level of earnings power is durable, not a single-quarter anomaly.
What Micron’s Q3 guidance implies about the earnings trajectory
For fiscal Q3 2026, scheduled on June 24, 2026, Micron guided for revenue of $33.5 billion, gross margins of approximately 81%, and non-GAAP EPS of $19.15, according to Q2 Fiscal 2026 earnings.
The sequential revenue jump from $23.86 billion to $33.5 billion in a single quarter, if delivered, would represent one of the fastest revenue accelerations any large-cap semiconductor company has ever produced.
My review of the trajectory from Q3 guidance toward TD Cowen’s $150 CY27 EPS estimate shows a path that requires continued HBM ramp, DRAM pricing strength through the second half of calendar 2026, and no material demand disruption in AI infrastructure spending.
None of those conditions looks particularly fragile, given current hyperscaler capex commitments.
Micron also selected Bechtel as its engineering, procurement, and construction partner for the first phase of its new Clay, New York, manufacturing complex. They are building the domestic capacity that supports both commercial demand and U.S. government semiconductor independence priorities.
Alexis Black Björlin, an AI infrastructure expert with board experience at Nvidia, Meta, Broadcom, and Intel, joined Micron’s board, signaling that the company is building strategic depth to match its financial momentum.
The June 24 earnings report is the next test. TD Cowen’s $1,500 target says the results will confirm that memory’s role in AI has permanently changed the ceiling on what Micron can earn.
Related: Wall Street sees something in Micron that could reshape the AI trade
