Wall Street is raving about Micron earnings as one of the biggest-ever surprises for a chipmaker

Core Insights - Micron Technology reported first-quarter results that exceeded analyst expectations for both earnings per share and revenue, leading to a significant stock surge of up to 14% [2][7] - The company provided strong guidance for the upcoming year, indicating robust demand for its products, particularly in the AI sector [5][7] Financial Performance - Micron's revenue from dynamic random access memory (DRAM) chips surged by 69%, highlighting the strong demand driven by AI applications [5] - Analysts from Morgan Stanley noted that Micron's revenue and net income upside is among the best in the history of the U.S. semiconductor industry [3] - Bank of America raised its fiscal year 2026, 2027, and 2028 projected earnings per share (EPS) by 62%, 80%, and 42% respectively, reflecting a significant upward revision in forecasts [4] Analyst Ratings and Price Targets - Morgan Stanley reiterated Micron as a top stock pick and increased its price target to $350, suggesting a potential upside of about 38% [3] - Mizuho Americas raised its price target from $270 to $290, citing a doubling of DRAM chip prices since the previous quarter [6] - BNP Paribas maintained a bullish outlook with a price target of $270, indicating a 20% upside potential from the current stock price of $225 [6] Market Outlook - Micron anticipates a year-over-year growth of approximately 20% in both DRAM and NAND demand for calendar year 2026 [7] - The company plans to increase its bit supply for DRAM and NAND by 20%, aligning with the expected demand growth [7]