Argus raised its price target on Micron Technology (NASDAQ: MU) to $540 from $320, while maintaining a Buy rating, citing exceptional growth driven by AI demand.
The firm noted that Micron’s fiscal second-quarter 2026 revenue and adjusted earnings significantly exceeded both management guidance and consensus expectations, with both metrics increasing by triple-digit percentages year over year.
Argus highlighted that the company’s fiscal third-quarter revenue guidance exceeded pre-report estimates by approximately $10.2 billion, while profit guidance came in nearly double analyst expectations.
The growth was attributed to strong pricing trends and rising demand for high-bandwidth memory used in AI applications, along with increased DRAM volumes, favorable product mix, and improving demand for NAND products.
With demand strengthening across multiple end markets and AI-related solutions driving overall growth, Argus reiterated its positive long-term outlook on the stock and raised its 12-month price target to reflect the improved earnings trajectory.
