Goldman Sachs now expects Micron Technology to report another robust fiscal third quarter when the company releases results later this month, citing tighter supply conditions and a pickup in memory-chip demand. The Wall Street firm sharply increased its near-term forecasts and its 12-month price target, but kept a Neutral rating on the stock.
Shares of the memory-chip maker rose roughly 4% in premarket trading on Tuesday, poised to extend a recovery that began after a recent sector sell-off driven by disappointing quarterly results at Broadcom last week.
Goldman raised its 12-month price target on Micron to $900 from $400. The bank also lifted its revenue and non-GAAP EPS estimates by an average of 28% and 36% for fiscal years 2026 and 2027 to reflect what it sees as stronger industry pricing trends and upside in demand. Despite the higher projections, Goldman maintained its Neutral rating on the shares.
Analysts led by James Schneider model a quarter that would exceed Street revenue expectations by about 9%. Goldman forecasts Micron’s quarterly revenue at $37.6 billion, a gross margin of 83.4%, and non-GAAP EPS of $22.07. Those figures compare with consensus estimates of $34.4 billion in revenue, an 81.9% gross margin, and $19.74 in EPS.
Goldman’s guidance for the August quarter is also well above consensus. The bank projects revenue of $48.8 billion for that quarter, versus a Street consensus of $40.4 billion. For full-year fiscal 2026, Goldman’s revenue and EPS estimates sit 30% and 36% higher than the Street, underlining the extent of its upward revisions.
Goldman’s analysts attribute the revisions primarily to ongoing market tightness. They said tight supply and demand conditions are expected to persist through 2027, which should support higher pricing and improved margins industry-wide.
Investor focus and key drivers
Goldman expects investor attention to center on Micron’s Strategic Customer Agreements, or SCAs. These long-term arrangements between Micron and its major customers lock in supply commitments and may include pricing guarantees, which could provide a measure of revenue visibility for the company.
“We believe investor positioning remains very bullish given the dramatic share price run-up and optimism around the potential impact of long-term customer agreements,” the analysts wrote, noting that market sentiment has grown more favorable as expectations about SCAs and pricing have strengthened.
The analysts also highlighted expectations that Micron will preserve or expand its roughly 20% share in high-bandwidth memory, or HBM. They said conventional DRAM pricing provides another potential source of upside.
Factors that could move the stock on the call
- Any additional detail on the scope and pricing terms of Strategic Customer Agreements.
- Management commentary on the sustainability of current DRAM pricing trends.
- Updates on Micron’s HBM roadmap, including whether the company can gain share with its next-generation HBM4 product.
These three items were flagged by Goldman as likely catalysts for market movement around the company’s upcoming earnings release.
What this means for markets
Goldman’s revisions signal a materially more optimistic view of Micron’s near-term revenue and profitability, but the firm’s Neutral rating indicates caution about how much of that improvement is already priced into the stock. Investors and market participants will be watching the company’s disclosures on long-term customer contracts, DRAM pricing commentary, and HBM progress closely, as those elements could alter expectations for revenue visibility and margin durability across the semiconductor and technology sectors.