Micron rallies ahead of Q3 earnings after Bernstein hike

Micron Technology shares rose Monday, outperforming the broader market as investors positioned ahead of fiscal third-quarter results due after the June 24 close. At the time Bernstein released its note, Micron was up about 5% on the session.

Analysts expect fiscal Q3 revenue near $35 billion, roughly four times the year-ago level, and consensus earnings per share of about $19.72, roughly a tenfold increase. Year-to-date the stock has gained roughly 250%.

Bernstein raised its price target to $1,300 and kept an Outperform rating. Analyst Mark Li more than doubled the prior target and cited a structural shortage in the dynamic random-access memory market driven by a shift in production toward memory designed for artificial intelligence workloads.

The note identified high-bandwidth memory, or HBM, as a key factor. HBM commands a premium over standard DRAM and is used with high-performance GPUs that support large AI models. Bernstein moved its valuation framework for Micron from price-to-book to price-to-earnings to reflect higher expected margins if HBM volumes and prices increase.

The firm indicated Micron’s HBM capacity for calendar 2026 is fully allocated and that early 2027 bookings look strong. As premium HBM3E and HBM4 volumes scale, Bernstein projects Micron’s product mix will shift toward higher-margin goods. Micron has guided gross margins near 81% for the quarter.

Bernstein cited large-scale purchasing by cloud operators and AI companies for GPU deployments and projected that disciplined demand combined with constrained supply could support pricing into calendar 2027. The firm expects those trends to prompt upward revisions to forward earnings estimates.

Micron will report results after the market close on June 24. Investors will focus on revenue, EPS, gross margin and management commentary on product mix and customer demand. The recent rally has set high expectations; any shortfall in guidance or weakening in HBM pricing will be closely examined, while stronger contract pricing or clearer visibility on HBM volume ramps would likely trigger analyst updates.