Micron Technology Inc. (NASDAQ:MU) is one of the best performing S&P 500 stocks in 2025. On December 18, Deutsche Bank raised the firm’s price target on Micron to $300 from $280 while keeping a Buy rating on the shares. Following another stunning earnings report and outlook, Deutsche Bank noted that Micron has exceeded even the most ambitious market expectations. The firm highlighted particular strength in pricing and gross margins and asserted that the company’s consistent technical execution and capital discipline are driving a shift within the memory industry.
In its FQ1 2026 earnings report, Micron Technology announced that it achieved total revenue of $13.6 billion, which is a 57% increase year-over-year, driven by an explosion in AI-driven demand. Profits significantly exceeded expectations, with a non-GAAP EPS of $4.78, which was up 58% sequentially. The company’s growth was broad-based across its business units. DRAM revenue reached $10.8 billion (79% of total sales), while NAND revenue hit $2.7 billion.
A major highlight of the report was Micron’s dominance in the HBM market. The company has already finalized price and volume agreements for its entire calendar 2026 HBM supply, including the upcoming HBM4, which is scheduled to ramp with high yields in FQ2 2026. Micron now forecasts that the TAM for HBM will reach $100 billion by 2028. Looking ahead to FQ2, Micron projects a revenue of $18.7 billion and a non-GAAP EPS of $8.42, signaling continued acceleration through the remainder of the fiscal year.
Micron Technology Inc. (NASDAQ:MU) designs, develops, manufactures, and sells memory and storage products in the US, Taiwan, Singapore, Japan, Malaysia, China, India, and internationally.
While we acknowledge the potential of MU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MU and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
While we acknowledge the potential of MU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MU and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
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