• Wells Fargo maintains an "Overweight" rating on Micron Technology Inc. (NASDAQ:MU), raising its price target from $300 to $335.
• Micron's first-quarter earnings significantly exceeded expectations with a 57% revenue increase to $13.6 billion, driven by high demand for AI chips.
• The company's profitability has improved, with gross margins expanding to 56% and operating margins to 45%, showcasing its ability to capitalize on the AI market.

Micron Technology Inc. (NASDAQ:MU) is a prominent player in the semiconductor industry, specializing in memory and storage solutions. The company is known for its dynamic random-access memory (DRAM) and NAND flash memory products, which are essential components in computers and other electronic devices. Micron competes with other major semiconductor companies like Samsung and SK Hynix.

On December 18, 2025, Wells Fargo maintained its "Overweight" rating for Micron, while keeping the action as "hold." At that time, the stock was priced at $225.52. Wells Fargo also raised its price target for Micron from $300 to $335, as highlighted by TheFly. This reflects confidence in Micron's future performance, despite the stock's recent 3.01% decrease, dropping $6.99 to a low of $221.70.

Micron's shares in Frankfurt surged nearly 12% during early European trading, driven by an optimistic forecast from the company. This surge aligns with Micron's impressive first-quarter earnings, which significantly exceeded analyst expectations. The company's revenue increased by 57% to $13.6 billion, surpassing the anticipated $12.9 billion. This growth is largely due to the rising demand for AI chips, reinforcing the notion that the AI boom is ongoing.

Micron's profitability has also improved, with gross margins expanding from 38.4% to 56% and operating margins rising from 25% to 45%. Adjusted earnings per share jumped from $1.79 to $4.78, exceeding the consensus estimate of $3.94. Following this positive news, Micron's stock rose by 8% in after-hours trading, showcasing its ability to capitalize on the growing AI market.

Micron's fiscal Q1 2026 results were remarkable, with record revenue of $13.6 billion, marking a 21% sequential increase and a 57% year-over-year rise. DRAM revenue alone reached $10.8 billion, up 69% from the previous year, accounting for 79% of total revenue. Despite supply constraints, Micron has positioned itself as a leader in AI memory solutions, with strong demand expected to continue through 2026.