Overview
- Micron shares rose about 7.5% in morning trading Friday after Bernstein’s Mark Li boosted his target to $330 with an outperform rating.
- Li projects a 20% to 25% sequential increase in DRAM prices for fiscal Q2 and expects pricing strength to persist through 2026.
- The call follows Micron’s fiscal Q1 report showing revenue up 56% to $13.6 billion and EPS of $4.60, with records across revenue, gross margin, EPS, and free cash flow.
- Micron guided to roughly $18.7 billion in fiscal Q2 revenue, about 67% gross margin, and approximately $8.19 in EPS, which Li says signals even stronger near-term pricing.
- Peers rallied as well, with Sandisk up more than 10% premarket, as AI data center demand and slow capacity additions underpin tighter memory supply.