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We're raising our Micron price target after an incredible quarter and robust guidance Published Wed, Sep 30 2026 8:04 PM EDT Jeff Marks @jeffmarkscnbc Micron on Wednesday evening delivered a much better-than-expected quarter and indicated that its fiscal year 2027 will be another strong one as demand for its memory products continues to exceed supply. Revenue in the fiscal 2026 fourth quarter, which ended Sept. 3, rose 379% year-over-year to $54.23 billion, a beat versus the $51.07 billion consensus forecast, according to estimates compiled by LSEG. Adjusted earnings per share (EPS) increased 1,002% to $33.42, beating expectations of $31.61, LSEG data showed. MU YTD mountain Micron YTD Shares traded in a tight range in after-hours trading, but settled around the flat line after management finished its post-earnings conference call. The stock had a good September, rallying roughly 11%. For the year, Micron is up roughly 275%. However, it is down 12% from its record close of $,1213 on June 25. Bottom line It was a record-setting year for Micron as tight supply conditions and surging demand for memory in AI applications led to healthy increases in its average selling prices, resulting in soaring revenue, gross margins, and EPS. Remember, there are two main products in the memory market. There is NAND, which is storage memory, like a flash drive. There is also dynamic random access memory, or DRAM for short, which is considered working memory, like the RAM in your computer. There's also a specialized form of DRAM called HBM, or high-bandwidth memory, which is the key enabling technology for modern AI workloads. While AI accelerators do the math that underpins AI computing, they rely on HBM to store and feed them data. For AI to be deployed efficiently and at scale, systems require higher memory bandwidth and greater memory capacity. Due to the growing memory needs of AI systems, DRAM and NAND industry demand has significantly exceeded supply, and no one truly knows when the two will find a balance. As tight as memory and storage supply and demand conditions were in 2026, Micron expects conditions to be even tighter in calendar 2027 and 2028 because supply simply can't catch up to demand. Roughly 75% of Micron's expected output in 2027 is already spoken for, and customers are already speaking with the company on their allocations for 2028. "The structural gap between DRAM supply and demand growth rates is resulting in ongoing supply tightness, and cleanroom additions are required to augment node-transition supply growth and help narrow the gap," CEO Sanjay Mehrotra said in the company's prepared remarks. Cleanroom additions refer to the physical expansion of manufacturing capacity by building and installing more equipment. Jim Cramer recently visited one of the company's massive semiconductor fabrication sites, or fabs as the industry calls them, which is under construction near headquarters in Boise, Idaho. "Even with additional industry DRAM cleanroom space plans, with robust demand trends including new upside requests from customers, we do not have line of sight to when supply and demand will return to balance," Mehrotra added. Demand for memory has fundamentally changed in this sup…