TD Cowen raises Micron stock price target to $200 on strong cloud mix

Investing.com - TD Cowen has raised its price target on Micron Technology (NASDAQ:MU) to $200.00 from $180.00 while maintaining a Buy rating on the stock. The company’s stock has shown remarkable momentum, delivering a 98% return year-to-date and trading near its 52-week high of $170.45.

The research firm cited Micron’s "unprecedented cloud mix" which accounts for approximately 65% of the company’s DRAM revenues as a key factor in the decision.

TD Cowen noted that growth opportunities in PC and smartphone markets remain ahead for Micron, distinguishing the current situation from the April 2021 cycle peak.

The firm acknowledged that Micron’s planned capital expenditure increase to $18 billion in fiscal year 2026, up from $14 billion in fiscal year 2025 (a 28% year-over-year increase), might concern some investors as the stock has historically been sensitive to CapEx figures.

Despite a similar situation in January 2024 when memory equipment booking strength temporarily caused a 10% correction in Micron stock, TD Cowen pointed out that the shares subsequently rose 50% over the following two months.

In other recent news, Micron Technology has seen a series of positive developments regarding its financial performance and future outlook. The semiconductor company reported quarterly results that exceeded expectations, with guidance surpassing analyst estimates, driven by strong DRAM demand and better-than-expected gross margins. Micron provided guidance for the November quarter, projecting $12.5 billion in revenue and $3.75 in earnings per share, which is above the consensus estimates of $11.9 billion and $3.10, respectively. The company’s gross margin guidance of 51.5% also represents a significant improvement over previous expectations.

Several analyst firms have responded positively to Micron’s recent performance. Piper Sandler raised its price target to $200, maintaining an Overweight rating, while Rosenblatt increased its target to $250, citing strong quarterly performance and optimistic future guidance. UBS and Cantor Fitzgerald also adjusted their price targets to $195 and $200, respectively, both maintaining favorable ratings. Wolfe Research joined in, increasing its price target to $200, highlighting Micron’s strengthening earnings potential. These developments reflect a broadly optimistic outlook from analysts regarding Micron’s future performance.

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