GoBull Research: Micron Surges 13% Post-Earnings, AI Memory Cycle Not Over

GoBull Research: Micron Latest Earnings Review

Data as of: June 25, 2026
Ticker: MU
Company: Micron Technology, Inc.

Key Conclusions

GoBull Research maintains a positive stance on Micron: business trends continue upward, the AI memory cycle is not over, and the stock could retest the $1,250 to $1,300 range in the short term.

However, two points must be distinguished: strong business fundamentals do not mean buying at current levels is risk-free. Micron has already seen significant gains this year, and volatility will remain elevated. Better risk/reward entry points lie in pullbacks rather than chasing the stock after earnings when sentiment is hottest.

GoBull Research's price outlook:

• Short term: If the post-earnings rally holds in regular trading, Micron could return to $1,250 to $1,300.
• 6 to 12 months: If revenue stays near $50 billion per quarter, EPS near $31, and memory prices don't soften significantly, an upside target of $1,350 to $1,450 is reasonable.
• Risk range: If AI hardware stocks continue deleveraging, a pullback to $1,050 to $1,100 wouldn't be surprising; if the market starts pricing in "peak memory prices," the downside could reach $930 to $1,000.

Earnings Highlights

Micron's latest quarter revenue was $41.46 billion, with an adjusted EPS of $25.11, significantly beating market expectations.

More importantly, the guidance for the next quarter. The company expects revenue of $49 billion to $51 billion, adjusted EPS of $30 to $32, and a gross margin of around 86%.

These numbers indicate two things:

• AI-related memory demand remains strong.
• Price increases are continuing to flow through to the bottom line.

This is no ordinary "beat." This earnings report is more akin to raising the market's entire earnings model up a notch.

Understanding the Recent Plunge and Recovery

Before earnings, Micron followed the AI hardware and memory sector lower, falling 13.2% on Tuesday. This decline was largely driven by trading dynamics: excessive prior gains, crowded AI trades, and some investors locking in profits early.

Post-earnings, Micron rebounded about 13% to 16% in after-hours trading. This recovery wasn't just a sentiment bounce but rather fundamentals reasserting themselves over short-term trading pressure.

In other words, the market was trading "AI is too expensive" before; after earnings, it switched to trading "earnings are still being revised upwards."

Business Trend Assessment

GoBull Research believes Micron's business remains in an uptrend for three reasons.

First, the AI inference phase will continue driving memory demand. While training relies more on GPUs, inference demands higher memory bandwidth and capacity. The strategic importance of HBM, DRAM, and enterprise SSDs is rising.

Second, the supply-demand balance remains tight. Current memory price increases haven't yet shown clear signs of demand destruction. Micron's sharply rising gross margins and upward guidance for the next quarter indicate customers are still accepting higher prices.

Third, rising capital expenditures reflect genuine demand. The company spent about $7 billion on capex this quarter and expects around $10 billion next quarter, with a total of $27 billion planned for FY2026. This suggests Micron is expanding capacity to meet customer demand, indicating the industry still faces short-term capacity constraints.

However, this also brings longer-term risks. The memory industry is inherently cyclical. Current high profits will spur expansion, and once supply floods the market, valuations will need reassessment.

Stock Price Outlook

Micron is no longer a deep-value turnaround play but rather a "profit revision up + stock already rallied" cyclical growth stock.

In the short term, the earnings quality is sufficient to support a price recovery. As long as the after-hours gains aren't quickly erased in regular trading, retesting the $1,250 to $1,300 range is a reasonable path.

In the medium term, if quarterly EPS approaches $31, annualized, that's about $124. Applying a 10x to 12x multiple to cyclical stocks, the corresponding range is about $1,240 to $1,488. Therefore, $1,350 to $1,450 is a justifiable optimistic target.

But if AI hardware trading continues cooling or the market starts worrying about 2027 peak memory prices, Micron could see a sharp pullback. The margin for error in chasing the stock at these levels is low.

Risk Considerations

Key risks include:

• Slowing memory price increases.
• HBM or DRAM supply recovery faster than expected.
• Downward revision of AI capital expenditure forecasts.
• Customers reducing new purchases after front-loading orders.
• High capital expenditures lowering future free cash flow expectations.
• Excessive prior stock gains leading to crowded trades.

GoBull Research Conclusion

Micron's earnings report proves: business fundamentals are not weakening but rather strengthening.

However, the stock has entered a high-volatility zone. GoBull Research remains bullish on the business but cautious on chasing the price. A more prudent strategy is to acknowledge the upward trend but wait for volatility to provide better buying opportunities.