Despite the seemingly recurring tech selloffs that continue to target AI and chip stocks in particular, Micron Technology (NASDAQ:MU | MU Price Prediction) shares remain up 177% year to date through Aug. 10, dwarfing the S&P 500 and the broader semiconductor tape. The headwind for the bears is right there in the recent tape: a 17% one-week drawdown from an early-June high of $1,079.57 to a recent print around $925. The narrative has shifted to overheated positioning, cyclical memory fears, and post-rally profit-taking.
Investors are overlooking the operating reality. Micron’s most recent quarter delivered the strongest fundamental results in the company’s history, and management has already guided to another step-up. Q3 2026 earnings on June 24 proved the long-term setup is in place for Micron to reset the narrative.
Micron’s HBM and Cloud Memory Strength Should Drive a Beat
Management’s official fiscal Q3 2026 guidance called for revenue of $33.50 billion, plus or minus $750 million, with non-GAAP diluted EPS of $19.15, plus or minus 40 cents, and gross margin near 81%. CEO Sanjay Mehrotra told investors the company expects “significant records again in fiscal Q3.”
That materialized, and then some. When the company reported in late June, revenue came in at $41.46 billion. EPS $25.11 beat analyst expectations of $21.39 by $3.72. The company also posted a gross margin of 84.9%.
The company said it has signed 16 strategic customer agreements covering data center, consumer, auto and other markets, which it believes will transform its business model. Management said these agreements represent about 20% of DRAM volume and one-third of NAND volume over the period, with roughly $22 billion in deposits and financial commitments tied to them. AI-driven demand is keeping DRAM and NAND supply tight and expects those conditions to persist beyond calendar 2027.
Micron is expanding capacity through major fab investments in Idaho, New York, Taiwan, Japan, Singapore and Virginia, while keeping capital spending disciplined. It plans fiscal Q4 CapEx of about $10 billion and said it intends to increase capital returns beginning after the December 2026 CHIPS-related milestone.
The Stock Looks Attractive at Current Levels
Micron trades at a forward P/E of just 11.99, a premium to the broader market, but the forward earnings ramp justifies it. The Street’s forward EPS estimate sits at $158 for coming 12 months, which compresses the forward multiple meaningfully given the Q3 run rate.
Analyst conviction is overwhelming. Out of the coverage universe, 89% rate Micron a Buy, with 39 Buy ratings against just one Sell rating. The 12-month consensus price target stands at $1,260.31, which is more than 44% higher than where the stock trades today.
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