I’ve covered Micron repeatedly, and each time, the story has been some version of the same thing. The artificial intelligence (AI) memory supercycle is getting bigger than the market expected, and Micron keeps proving the bears wrong.Tuesday, June 23, is a jarring interruption. MU dropped more than 12% to below $1,060. Why? Not because of anything Micron did, but because South Korean stocks crashed 10%, triggering a 20-minute trading suspension, according to Reuters.The massive sell-off was sparked by a global pullback in AI and tech stocks, foreign profit-taking following an overheated rally, and regulatory concerns over leveraged ETFs tied to the country’s largest chipmakers.Spooked investors heading into the June 24 earnings print hit the sell button first and asked questions later.I have seen this movie before. A sharp pre-earnings pullback on macro noise, right before a company that has beaten estimates six straight quarters is about to report again. Bank of America’s Vivek Arya, who ranks 70th out of 12,314 Wall Street analysts on TipRanks with a 64% success rate, chose this exact moment to raise his Micron price target.Also Read: Micron Technology Inc. Latest News and StoriesBofA raises Micron stock price target to $1,500 from $950Vivek Arya raised the price target to $1,500 from $950, maintaining his buy rating, in a report shared with me at TheStreet. That is a $550 increase on a day when the stock was falling. The message is hard to misread.My read of the BofA note is that Arya is not just raising a number, but also making a structural argument about what memory means in the AI era, and doing it loudly on the day the market is most nervous.The core thesis is this: DRAM and high-bandwidth memory are not cyclical commodities in this environment. They are mission-critical AI infrastructure components with demand that scales with every major model upgrade, every new reasoning capability, and every agentic deployment.More Micron:Micron stock draws aggressive target reset from 5-star analystMicron gets aggressive stock price target from veteran analystRoundhill CEO spots major shift for Micron stockAs AI models grow larger and more complex, the memory required to run them grows proportionally — and that demand does not follow the traditional PC and mobile cycle that defined memory markets for decades.Arya also pointed specifically to Micron’s new strategic agreement with Anthropic, unveiled June 22, as a concrete validation of that thesis. The deal spans memory and storage architecture design, a multi-year supply agreement, and a strategic investment in Anthropic’s Series H round. “Micron’s strategic collaboration with Anthropic brings together the industry-leading capabilities of both companies to innovate and scale next-generation AI infrastructure,” said Micron Chief Business Officer Sumit Sadana.As mentioned in my previous Micron coverage, that is not a random supply deal. It is a frontier AI lab publicly tying its infrastructure scaling strategy to Micron’s product roadmap.
Excluding Nvidia and Micron, the Q1 fiscal 2026 Information Technology sector blended earnings growth rate would drop to 28.5% from 50.7%.Green/Bloomberg via Getty Images
What Micron’s Q3 fiscal 2026 needs to showWall Street’s consensus for Q3 fiscal 2026 calls for revenue of approximately $35 billion and EPS of $20.76, versus Micron’s own guidance of $33.5 billion at the midpoint and non-GAAP EPS of $19.15, according to TheStreet. The expected beat is already baked in. What matters is what comes after it.Guidance is the number I will be watching on the evening of June 24, not the quarter itself. If Micron guides Q4 revenue above $38 billion to $40 billion and signals HBM pricing strength extending into 2027, the selloff on June 23 becomes a textbook buy-the-dip setup. Related: One Micron number could reshape entire AI trade narrativeIf management sounds cautious on HBM volumes or pricing trajectory, the reaction will be uglier than the June 23 macro-driven drop.The Q2 fiscal 2026 foundation is worth keeping in mind. Revenue of $23.86 billion was already a record. DRAM revenue hit $18.8 billion, up 207% year over year. According to Micron’s own Q3 fiscal 2026 guidance, gross margins call for approximately 81%. The sequential jump from $23.86 billion in Q2 to the $33.5 billion midpoint guidance for Q3 — if delivered — would rank among the fastest revenue accelerations any large-cap semiconductor has ever produced.The analyst consensus and the technical setupThe analyst’s target revision cycle around Micron is worth noting for context. BofA at $1,500 joins the following, according to TheStreet.Susquehanna at $1,750UBS at $1,625Aletheia Capital at $1,600Needham at $1,550TD Cowen at $1,500Stifel at $1,500Cantor Fitzgerald at $1,500Deutsche Bank at $1,500Wedbush at $1,300Bernstein at $1,300Wolfe Research at $1,250Citi at $1,200That concentration of targets between $1,200 and $1,750 on a stock trading below $1,100 implies meaningful consensus upside even after an 800%+ one-year return, according to Yahoo Finance.Related: Micron ties its future to Anthropic in supply dealLooking at the technicals, MU is trading toward the confluence of key support levels at around $1,020 and $980.A strong horizontal zone that has held the price several times, both as support and resistance.An ascending trendline that the price has respected several times since late April 2026.The probability of a break and close below the double support level looks minimal, given the earnings catalyst arriving June 24. A rejection at the double level (which is more likely) would have Micron recover the June 23 drop and potentially hit fresh all-time highs in the next few sessions.
MU is trading toward the confluence of key support levels at around $1,020 and $980.Trading View
Micron has been one of the biggest drivers of the technology sector’s earnings surge. Alongside Nvidia, it accounted for a significant share of the sector’s growth in Q1 2026. According to FactSet, excluding Nvidia and Micron would have cut the Information Technology sector’s blended earnings growth rate to 28.5% from 50.7%.Micron has also rewarded investors, ranking as the third-best performer in the S&P 500 this year, trailing only Sandisk and Western Digital, Slickcharts noted. The June 23 sell-off set up exactly the kind of entry point that looks obvious in hindsight.Related: Micron gets aggressive stock price target from veteran analyst