TD Cowen analyst Krish Sankar has reiterated a Buy rating on Micron with a $1,600 price target, implying roughly 70% upside from current levels. He argues the missing piece isn't better margins but investor confidence that AI-driven demand for memory chips will last.
Micron Technology shares trade around $930, stuck well below the average Wall Street price target of $1,300 to $1,550 despite a business growing faster than most chipmakers. TD Cowen's Krish Sankar thinks that gap is about to close. He reiterated a Buy rating and set a $1,600 price target, implying roughly 70% upside from current levels, putting his call at the top end of the Street's range.
A rally built on earnings, not a re-rating
Micron's stock has climbed 226% this year. That surge has been driven mainly by spectacular earnings growth rather than a change in how investors value each dollar the company earns. Sankar's thesis is that this missing valuation re-rating, not margins, is what could still push the stock higher.
What the Q4 numbers are expected to show
Micron reports fiscal Q4 2026 results on September 30. Wall Street expects adjusted earnings per share of around $31.14, up from $3.03 a year earlier. Revenue is forecast at roughly $50.42 billion, a year-over-year increase of about 345%. The average price target's implied consensus is a Strong Buy rating, and Sankar's number sits at its upper edge.
Margins have mostly done their work
Sankar estimates Micron has already completed more than 80% of its current margin-expansion cycle. Gross margins are expected to peak near 89% in the second quarter of calendar year 2027. What hasn't been priced in, he argues, is the durability of demand: the AI infrastructure buildout has created a structural appetite for high-bandwidth memory that goes beyond a single product cycle.
The supply side of the AI memory story
Micron is one of three major suppliers in the high-bandwidth memory market alongside Samsung and SK Hynix. It has also secured multi-year supply agreements with major customers, giving it revenue visibility that commodity memory makers historically haven't had. Investors heading into the September 30 report will be watching guidance for the first half of fiscal 2027 as closely as the quarter's headline numbers.
Sources: MarketWatch (snippet-based), Crypto Briefing
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