Micron’s Stock Price Rally Is Not Over: MU $190 Is Coming Soon

Key Points

• Micron's Q4 results and guidance update affirm a robust global AI infrastructure industry position.
• Analysts' trends point to a high-end of $190 as of late September; higher highs will likely be set in 2026.
• Institutions provide a tailwind for the action and may accelerate buying now that guidance is in.

Micron’s NASDAQ: MU stock price rally is not over. The move is fundamentally driven by AI and its impact on revenue and Micron’s position in the global semiconductor industry. The move is technically driven by forces rooted in the DotCom bubble of 1999/2000 and can easily reach the $190 level soon.

Technically, Micron has been trapped in a trading range dating back to the DotCom peak and only recently broke out. That move implies a rally equal to the range’s magnitude, which is approximately $96. Adding $96 to the DotCom high gives a target of roughly $190. 

And it’s not like this forecast is unreasonable. Other prominent AI-centric companies have experienced similar stock price movements. Blue-chip tech leaders, including NVIDIA NASDAQ: NVDA, Microsoft NASDAQ: MSFT, Oracle NYSE: ORCL, Advanced Micro Devices NASDAQ: AMD, and Amazon NASDAQ: AMZN, have all crossed new highs, driven by cloud growth and now AI, and have seen their stock prices advance by high triple-digit amounts since.

Their analysts' consensus forecasts all include substantial increases from late September highs, as does the forecast for Micron’s stock.

Micron’s Q4 results will likely strengthen the bullish analyst and institutional trends. MarketBeat’s data reveals that Micron’s coverage is rising and strong, with 29 current ratings and a bullish bias.

More than 80% of the analysts tracked rate the stock as an outright Buy, and the consensus price target is trending higher. 

The activity leading into the Q4 release and F2026 guidance update includes several upgrades and price target increases, sufficient to put Micron on MarketBeat’s list of Most Upgraded Stocks, forecasting a move to $200 at the high end of the range.

Institutions are likewise bullish, buying this stock on balance in the first three quarters of 2025 at a pace of nearly $2 to $1.

Micron’s Q4 Results Affirm Robust Outlook for AI Demand

Micron reported a solid fiscal fourth quarter, with demand for DRAM, data center products, and AI underpinning the results. The company reported $11.32 billion in net revenue, representing a 46% increase over the same period last year.

The increase is an acceleration from the previous quarter and outperforms the consensus by 140 basis points. All end markets reported growth tied to DRAM. The NAND markets were weaker and contracted by a mid-single-digit percent. 

Margin is a critical detail. The company widened its margin at the gross and operating levels in the GAAP and adjusted comparisons due to increased revenue leverage and inventory drawdown. The results include a 24.3% increase in year-over-year operating cash flow, $3.47 billion in adjusted net income, and $3.03 in adjusted earnings per share. 

The EPS is up more than 100% compared to the prior year, outperforming the consensus by 600 basis points, and the strengths are expected to continue in the coming fiscal year. 

Micron’s guidance is a driving force for this market. The company issued robust Q1 estimates forecasting record revenue above the consensus forecasts.

The target for earnings is particularly noteworthy, with an expectation of $3.60 at the low end of the range, compared to the consensus of $3.04. The takeaway is that Micron analysts are expected to lift their estimates in October and November, boosting support for this stock. 

Micron Built Value for Shareholders in 2025: More Expected in 2026

Micron’s cash flow and balance sheet highlight the strength of its business. Details at the end of F2025 include increased cash, receivables, current and total assets. Total assets increased by more than $13 billion, offsetting the $4.4 billion increase in liabilities, and drove a 20% increase in shareholder equity. Long-term debt is up, but leverage remains low.

The company’s total liability is approximately 0.5x its equity, while the debt is about 1.45x its cash and 0.25x its equity, indicating a fortress-like condition.