Micron Technology's latest quarterly results comprehensively beat Wall Street expectations, yet the stock showed little reaction in pre-market trading given its massive prior rally. Even so, Wall Street investment banks remain broadly bullish on the chipmaker's long-term profitability amid the artificial intelligence wave.

According to the earnings data, Micron Technology (NASDAQ: MU) reported fourth-quarter revenue of $54.23 billion, nearly four times the year-ago figure, with adjusted earnings per share of $33.42, both beating market consensus. Meanwhile, the company issued strong guidance for the first quarter of roughly $61.5 billion in revenue and $38.15 in earnings per share.

Despite the strong results and guidance, Micron Technology shares barely moved in pre-market trading following the earnings release. This muted performance stands in sharp contrast to the stock's powerful run this year, with Micron Technology (NASDAQ: MU) shares having surged 237% year-to-date in 2026, driven by a surge in memory chip demand fueled by accelerating AI applications.

Faced with the short-term stall in the share price, several top Wall Street investment banks quickly reiterated their bullish ratings on Micron Technology (NASDAQ: MU). Analysts widely believe that the increase in long-term strategic customer agreements and the structural supply-demand tightness in the memory chip market will provide solid upside for the stock.

AI Demand Drives Solid Long-Term Fundamentals

Since the start of 2026, Micron Technology (NASDAQ: MU) shares have climbed substantially, propelled by surging memory demand from accelerating AI adoption. Deutsche Bank believes this robust market demand is expected to continue strengthening in the near future, further pushing Micron's share price higher.

Deutsche Bank analyst Melissa Weathers noted in a report to clients that the overall fundamentals of the memory industry are structurally very solid for the foreseeable future. She said that while the narrative around the memory sector may continue to fluctuate in the current AI environment, Micron's specific drivers and the strong supply-demand backdrop can support its profitability across cycles well above historical trends.

On this basis, Deutsche Bank maintained its "Buy" rating on Micron Technology (NASDAQ: MU) and set a price target of $1,550, implying nearly 46% upside from Wednesday's closing price.

Strategic Customer Agreements Enhance Earnings Visibility

Wall Street institutions broadly noted Micron's substantive progress in locking in long-term customer demand and pricing power.

Bank of America pointed out that with the update of high-bandwidth memory pricing agreements and the expansion of Strategic Customer Agreements (SCAs) from 16 last quarter to 26, management's visibility into quarterly sales and gross margin expansion for fiscal 2027 is improving significantly. The bank maintained its "Buy" rating and $1,550 price target, and expects memory chips to capture more value in 2027 and beyond.

Goldman Sachs added that Micron Technology (NASDAQ: MU) signed 10 new long-term agreements, accounting for roughly 35% of expected fiscal 2030 revenue in total, with about 75% of them including structural pricing frameworks. Goldman Sachs believes these agreements are a positive for the share price, helping to raise the valuation multiple investors are willing to pay for "peak" earnings.

JPMorgan also emphasized that the expanded coverage of strategic customer agreements, upgraded expectations for supply-demand tightness, and a clear capital return strategy together constitute a strong multi-year earnings logic for Micron Technology (NASDAQ: MU).

Wall Street Consensus Bullish, Highest Price Target Reaches $1,625

Although Goldman Sachs cautioned that elevated expectations and slight downward pressure on gross margins could partially offset the share price, major Wall Street investment banks maintained positive ratings on Micron Technology (NASDAQ: MU). Among them, UBS set the highest price target on Wall Street at $1,625 and maintained its "Buy" rating.

UBS expects the market will eventually assign a higher price-to-earnings multiple to the stock, with Micron's gross margin floor unlikely to fall below 65% to 70%. Because memory is critical in the AI world, higher returns on equity throughout the cycle will provide solid support for the share price.

Citi gave Micron Technology (NASDAQ: MU) a price target of $1,300. The institution stressed that the industry's main constraint at present is cleanroom space, and Micron's capital expenditure plan for fiscal 2027 is mainly aimed at building cleanrooms that will begin production at the end of 2028 and beyond, demonstrating the company's confidence in long-term demand trends.

In addition, Morgan Stanley assigned an "Overweight" rating and a $1,200 price target, arguing that although the company's sequential improvement has slowed somewhat, the strong momentum in its business remains evident, and the durability of this cycle is still underestimated by some market capital.