Micron’s stock has soared 215.97% YTD, with a strong Q1 2026 earnings report boosting market sentiment, contrasting Nvidia and Broadcom’s declines. Revenue rose to $13.64 billion, GAAP net income hit $5.24 billion, and operating cash flow grew to $8.41 billion.

The company’s Q2 guidance was robust, leading to a 10.2% stock increase. Revenue for the quarter is projected at $18.70 billion, with a gross margin of 67.0% and operating expenses of $1.56 billion. Diluted EPS is expected to be $8.19.

Bank of America analysts upgraded Micron’s stock rating to buy, raising pro forma EPS estimates for 2026-2028. Potential risks include memory price declines, competition from Chinese firms, and softening demand in major markets.

Morgan Stanley raised the stock price target to $350, while MarketBeat shows a consensus buy rating. Goldman Sachs reiterated a neutral rating at $235. Chinese firm CXMT plans an IPO in 2026, aiming to catch up with Micron and others in chip production.

Micron plans a $100 billion investment in its New York megafab, but potential AI demand volatility could pose a risk. Analysts anticipate CXMT’s HBM3 chip production in 2026, though Micron plans to launch HBM4 the same year.

Concerns persist about a potential AI bubble burst affecting memory demand. Sundar Pichai’s comments highlight the industry’s vulnerability. Micron’s investment in the megafab may become a challenge if demand plummets.

The story was published by TheStreet on Dec 21, 2025, discussing Micron’s future prospects and potential risks in the memory industry. Analysts’ outlook remains positive, but caution is advised due to market uncertainties.

Read more at Yahoo Finance: BofA raises Micron rating and price target after earnings