Goldman Sachs significantly raised Micron's target price to $900

Goldman Sachs released a report, expecting that ongoing market tensions will drive Micron's performance significantly beyond market consensus expectations and company guidance. The firm previously raised its overall industry outlook and anticipates that the tight conditions will persist throughout the 2027 fiscal year, bringing higher pricing and profit margins to the industry.

Considering the significant rise in stock prices and the market's optimism regarding potential long-term customer agreements, investor sentiment remains very positive. Goldman Sachs expects Micron's revenue for the third fiscal quarter ending in late May to exceed market consensus by approximately 9%, and driven by upward pricing, it guides for significant sequential revenue growth for the fiscal quarter ending in late August.

The firm expects last fiscal quarter's revenue, gross margin, and earnings per share to be $37.6 billion, 83.4%, and $22.07, respectively, while the market consensus is $34.4 billion, 81.9%, and $19.74. For the 2026 fiscal year, the firm’s revenue and earnings per share estimates for Micron are 30% and 36% higher than market consensus. Goldman Sachs raised Micron's target price from $400 to $900, with a rating of "Neutral."