The Artificial Intelligence (AI) Stock That Wall Street Can't Stop Upgrading in 2026
While positive coverage from Wall Street analysts doesn't necessarily mean a stock will go up, it can be a useful gauge of sentiment among influential institutional investors. It can also provide useful insights into the key catalysts that could shape pricing action going forward. Along those lines, Micron Technology ( MU 1.12% ) shareholders and those who are considering buying the stock have had a lot to feel good about recently. On June 24, the company published results for the third quarter of its current fiscal year -- a period that wrapped on May 28. Following the memory technology specialist's blowout quarterly report, it has received another round of bullish ratings and price target increases from high-profile investment firms. Wall Street loved Micron's fiscal Q3 report Micron posted sales of $41.46 billion in the quarter, trouncing the average analyst estimate for revenue of $35.84 billion in the period. Meanwhile, earnings per share came in at $25.11, crushing the average estimate of $20.78. The company also guided for strong sales growth to continue, targeting roughly $50 billion in revenue in the current quarter -- up from roughly $11.3 billion in the prior-year quarter. With such strong results and impressive forward guidance, it wasn't surprising to see a wave of analysts raising valuation targets. On June 25, Deutsche Bank published new coverage on the stock -- maintaining a buy rating and raising its one-year price target from $1,500 per share to $1,550 per share. Melissa Weathers, the firm's lead analyst on the stock, said that Micron's fiscal Q3 report showed the business had cleared a high bar strategically and financially, and went so far as to describe the performance as "stunning." The same day, investment firm DA Davidson weighed in with its own new report on the stock. The firm reiterated its buy rating on Micron and raised its one-year price target from $1,500 per share to $2,000 per share. While the business has historically been subject to cyclical trends, demand connected to artificial intelligence has provided the memory technology leader with its best-ever demand outlook and performance visibility. DA Davidson's analysts said the strong demand cycle for AI memory chips is far from over, and Micron's long-term supply contracts suggest they are correct. Today's Change ( -1.12 %) $ -11.52 Current Price $ 1020.76 On June 29, Cantor Fitzgerald also raised its one-year price target on the stock from $1,500 per share to $2,000 per share and maintained an overweight rating on the stock. Cantor's analysts pointed to the company locking in future revenues at high gross margins through multi-year contracts as a big win for Micron, likely to translate into continued valuation gains. Again, the latest wave of bullish analyst coverage doesn't necessarily mean Micron stock will continue marching higher over the next year. Even though the business is posting stellar performance, macroeconomic pressures and other dynamics could lead to valuation stagnation or significant pullbacks in the stock. On the other hand, analysts' positive coverage reflects just how strong the business's results have been and how promising its outlook is -- and it's not hard to see why Wall Street loves the stock right now.
Source: The Motley Fool