Micron Price Prediction: Wedbush Raises Target to $500, Topping Yesterday's Wall Street Call

Core Viewpoint - Micron Technology (MU) is experiencing significant stock price momentum, with Wedbush raising its price target to $500, driven by strong demand in the memory market and expectations of substantial price increases for NAND and DRAM products [1]. Group 1: Price Target and Stock Performance - Wedbush analyst Matt Bryson has increased Micron's price target from $320 to $500, the highest on Wall Street, based on positive post-Chinese New Year industry checks indicating no demand deterioration [1]. - Micron's stock has surged 33% year-to-date and 344% over the trailing twelve months, with the current trading price at $405.35 [1]. - The consensus target among analysts is $417.82, indicating a generally optimistic outlook for the stock [1]. Group 2: Key Drivers of Stock Performance - Expected upside in Q2 and Q3 earnings, with Micron guiding Q2 FY2026 revenue to $18.70 billion and non-GAAP EPS of $8.42, which Wedbush believes will exceed expectations [1]. - Industry checks post-Chinese New Year confirm no fall-off in memory demand, with high-bandwidth memory (HBM) capacity sold out through 2026 and orders extending into 2027 [1]. - Predictions of NAND and DRAM price inflation between 30%-50%, which would significantly enhance Micron's gross margins, projected to reach 68% in Q2 FY2026 [1]. Group 3: Conditions for Achieving $500 Target - To reach the $500 target, Micron needs sustained strength in DRAM and NAND pricing through the second half of 2026, continued demand from hyperscalers and AI data centers, and Q2 and Q3 results that reset market expectations higher [1]. - CEO Sanjay Mehrotra emphasized Micron's role as an essential AI enabler, supported by its technology leadership and strong operational execution [1].