Micron (MU +3.18%) stock climbed 4.5% through 12:30 p.m. ET today on two encouraging news items.
The biggest news of the day, of course, is the remarkable 28% run-up in Dell Technologies' (DELL +31.37%) stock price after it reported earnings last night. The second is... another price target hike for Micron itself.
Let's take those in order.
Image source: Micron.
What Dell's success means for Micron
Reporting fiscal Q1 2027 results last night, Dell announced a huge earnings beat: Non-GAAP Q1 profits of $4.86 per share (and GAAP profits of $5.24 per share), both numbers well ahead of analysts' forecast $2.88 per share. Dell also beat soundly on sales, reporting $43.8 billion versus a $34.8 billion consensus.
Sales surged 88% year over year, and profits soared 282%.
Dell generated a record level of free cash flow in Q1, $4.1 billion, demonstrating that Dell's got plenty of cash to buy all the computer memory it needs for its servers.
Commenting on the results, Dell had reassuring words for anyone doubting the durability of the artificial intelligence revolution. "AI orders" made up 56% of Dell's business last quarter, and AI servers for data farms in particular were nearly two-thirds of total AI orders. Based on these results, Dell has raised its fiscal 2027 AI server sales forecast to $60 billion.
NASDAQ: MU
Key Data Points
What it means for Micron
Clearly, the AI revolution is alive and well, with Dell COO Jeff Clarke commenting, "the AI opportunity shows no signs of slowing." For Micron investors, this means there are no signs of Micron's sales slowing either.
Not in 2026... or 2027, either. This morning, Susquehanna analyst Mehdi Hosseini delivered Wall Street's latest Micron endorsement. Predicting memory supply will remain tight through 2027, he now values Micron stock at $1,750 per share.
