Goldman Sachs resets Micron stock target with a twist

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Micron Technology's (MU) Q3 2026 net study landed connected June 24, giving the AI commercialized a severely needed jolt.

Goldman Sachs had cautioned that the positioning was bullish, expectations were high, and the stock's immense tally near small country for disappointment.

Then Micron delivered much than a beat.

Revenue, margins, and guidance came successful good supra consensus, portion absorption outlined semipermanent lawsuit agreements that could marque the representation rhythm look little volatile than Wall Street erstwhile assumed.

As noted successful TheStreet's unrecorded blog, covered by tech newsman Noah Weidner, the absorption was immediate.

According to Reuters, Micron shares jumped astir 12% successful extended trading aft it pointed to booming AI representation request and a whopping $22 cardinal successful lawsuit commitments to unafraid spot supply. As of this writing, Micron's banal terms is $1,048 per share.

On apical of that, the read-through dispersed rapidly crossed representation and spot banal names. Western Digital, Sandisk, and Seagate each jumped implicit 8% aft hours, portion Arm gained astir 6%, Marvell roseate astir 4%, and Broadcom added 2%.

Nevertheless, Goldman stayed cautious.

According to TheFly, 5-star expert James Schneider bumped his terms people connected the backmost of Micron's net powerfulness yet kept a Neutral rating.

That divided is the story: Goldman sees stronger fundamentals, tighter supply, and amended visibility but besides worries that the rally whitethorn already bespeak overmuch of the bully news.

Micron Q3 net astatine a glance

Micron's Q3 gross surged to $41.46 billion, beating the statement of $35.82 billion by $5.64 billion, driven by beardown AI representation demand.
Non-GAAP net came successful astatine $25.11 per share, good supra the $20.71 statement estimate, marking a $4.40 net beat.
For Q4, Micron guided gross of $49 cardinal to $51 billion, with the $50 cardinal midpoint topping statement by $6.55 billion.
Q4 non-GAAP EPS guidance of $30 to $32 besides came successful sharply supra the $25.43 consensus, portion gross borderline is expected to beryllium adjacent 86%.
Management highlighted AI-driven spot successful DRAM and HBM pricing, with operating currency travel rising to $25.4 billion and escaped currency travel reaching $18.3 billion.
Source: Micron Investor Relations.