MU Stock Leads Memory Chip Rally Amid Iran Relief – DRAM Surges 6% As SK Hynix, Samsung Gain

Micron Technology (MU) was upgraded to Buy by analysts on October 5, 2026, citing strong AI-driven demand and multi-year contract visibility. The stock is trading at $1,065.85, 42.0% above its GF Value™ of $750.73, indicating significant overvaluation. Micron's GF Score™ is 90/100, reflecting robust financial health and growth, but insiders have been net sellers.

Micron Technology reported adjusted earnings of $33.42 per share and revenue of $54.23 billion, up from $41.46 billion. 25 analysts rate it Buy, with Goldman Sachs maintaining a Hold. Goldman raised its price target to $1,250, citing strong demand and supply constraints. Micron aims to stabilize cycles with key client agreements, covering 35% of projected revenue through 2030.

Goldman Sachs raised its price target for Micron MU to $1,250, citing near-term favorable supply-demand conditions for DRAM and NAND. The firm expects these conditions to support Micron's pricing and earnings through 2028, but warns of potential headwinds from rising industry capacity. Micron's 26 Strategic Customer Agreements, covering 35% of revenue through 2030, were highlighted as a positive for revenue visibility.

Micron forecasts RAM shortages to persist until 2028, with demand outpacing supply. CEO Sanjay Mehrotra stated that most of 2025's memory is already sold, and prices will rise. The AI boom, particularly demand for high-bandwidth memory, is driving the shortage. Micron's DRAM sales reached $39.8 billion last quarter, up 343% year-over-year, and its stock has surged over 500% in the past year.

South Korean retail investors sold $1.1B in semiconductor 3x leveraged ETFs, notably SOXL, and shifted to ultra-short Treasuries and dividend ETFs like SCHD and JEPQ. Concerns over rising interest rates and AI investment slowdown drove the shift. SOXS saw $138.83M in net buying, while individual semiconductor stocks like SK Hynix and Nvidia also faced net selling.

Micron (MU) reported fiscal Q4 revenue of $54.23B, up from $11.32B a year earlier, with non-GAAP earnings of $33.42 per share. The company achieved an 87% gross margin, driven by high demand for its memory chips, including HBM for AI accelerators. Micron signed strategic customer agreements, with noncurrent liabilities rising to $12.9B, indicating long-term supply commitments.