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When it comes to artificial intelligence (AI) chips, most investors naturally think of chip giants like Nvidia (NVDA) and Advanced Micro Devices (AMD) for their powerful GPUs. However, Micron Technology (MU) also deserves a seat at the table, thanks to its high-performance memory and storage chips, such as DRAM and NAND. These chips are crucial for training and running AI models across various devices, including data centers, smartphones, and edge devices.
Micron made headlines last month with strong third-quarter earnings, highlighting growing demand for AI-driven memory capacity. Shortly after, the company also earned a Street-high $200 price target from Rosenblatt analyst Kevin Cassidy, who pointed to Micron’s solid Q3 performance and growing role in the AI space as key reasons behind his bullish outlook. It has already been a strong year for Micron so far, but can MU stock climb all the way to this new target?
About Micron Stock
With a market capitalization of about $137 billion, Micron is a leading player in the memory and storage industry, offering advanced DRAM, NAND, and NOR solutions through its Micron and Crucial brands. Its innovations are central to the growing data economy, enabling everything from AI workloads in data centers to performance-driven experiences at the edge and on mobile devices.
After slipping about 9% over the past year, this memory powerhouse has flipped the script in 2025. So far this year, MU stock has surged an impressive 42%, leaving the broader S&P 500 Index’s ($SPX) modest 6% gain year-to-date (YTD) in the dust. Even more striking, shares have skyrocketed 75% in just the past three months, signaling a powerful resurgence fueled by growing demand and renewed investor confidence.
With Rosenblatt’s bullish price target in mind, Micron’s present valuation level looks notably attractive. The stock currently trades at a modest 17 times forward earnings, which is well below its semiconductor peers, such as Nvidia’s 40 times and AMD's 43 times. MU stock is also trading far under its own five-year average, suggesting investors may still be underestimating its upside as demand for AI-powered memory continues to accelerate.
Inside Micron’s Q3 Earnings Report
Micron released its fiscal 2025 third-quarter earnings on June 25, surpassing projections on both the top and bottom lines. Micron generated a record $9.3 billion in total revenue during the period. The reported figure marked a more than 36% increase from the year-ago period, and also comfortably surpassed the $8.8 billion consensus target. But the real growth story goes beyond just the top-line beat. Micron’s non-GAAP gross margin expanded to 39% in Q3, up from 28.1% in the same quarter last year.
Digging further, DRAM stole the spotlight with revenue reaching $7.1 billion in Q3, up a remarkable 51% year-over-year (YOY) and accounting for 76% of Micron’s total revenue. On a sequential basis, DRAM sales rose 15%, fueled by a more than 20% jump in bit shipments, even as average selling prices dipped slightly due to a greater mix of consumer-grade products. NAND generated $2.2 billion, representing a 4% YOY increase and accounting for 23% of total revenue.
Meanwhile, Micron’s compute and networking segment, which includes its data center HBM sales, posted a standout performance, raking in $5.1 billion. In fact, management credited the record-breaking segment revenue to all-time-high DRAM sales, with HBM revenue alone soaring nearly 50% sequentially. CEO Sanjay Mehrotra highlighted that data center revenue “more than doubled year over year and reached a record level,” underscoring Micron’s growing momentum in the AI-driven memory race. “We are on track to deliver record revenue with solid profitability and free cash flow in [fiscal 2025], while we invest to build on our leadership to address growing AI-driven memory demand,” Mehrotra added.
Micron’s revenue surge also delivered a big win on the bottom line. The company’s adjusted EPS of $1.91 jumped a whopping 200% annually, easily crushing Wall Street’s estimates of $1.59.
Looking ahead to the fourth quarter, Micron is aiming even higher, with revenue expected to reach $10.7 billion, plus or minus $300 million. Non-GAAP EPS is projected to range between $2.35 and $2.65. Over the longer term, analysts tracking Micron see a massive surge in the bottom line in fiscal 2025. And the upward momentum is expected to continue in fiscal 2026 with another 68% surge in profit to $11.80 per share.
Wall Street’s Bullish Bet on Micron Technology Stock
Following Micron’s blowout Q3 results, Rosenblatt analyst Kevin Cassidy boosted his price target on the stock from $172 to a Street-high $200, while reaffirming his “Buy” rating. Cassidy remains firmly bullish, citing booming AI-driven DRAM demand and Micron’s best-in-class power efficiency as key drivers behind its standout performance. The analyst continues to favor the stock, highlighting its compelling valuation, solid balance sheet, widening margins, and strong earnings leverage as reasons to stay optimistic.
Overall, Wall Street is clearly bullish on Micron, with MU stock earning a consensus rating of “Strong Buy” as optimism around its AI-driven growth story continues to gain steam. Of the 30 analysts offering recommendations, a majority of 22 analysts advocate for a solid “Strong Buy,” four suggest a “Moderate Buy,” three play it safe with “Hold,” and the remaining one gives a “Strong Sell" rating.
The average analyst price target of $150.72 indicates 26% upside potential from current levels, but Rosenblatt’s ambitious Street-high target of $200 suggests that the stock can rally as much as 67%. With explosive earnings, rising AI tailwinds, and growing confidence from analysts, Micron is gaining serious momentum. If MU stock’s current trajectory holds, the memory giant could be gearing up for a breakout run toward the bold $200 target.
