Goldman Sachs Sees Near-Term Strength, Long-Term Risks for Micron

Goldman Sachs has offered a nuanced outlook on Micron Technology (MU), blending short-term optimism with long-term caution. The firm raised its price target to $1,250 from $1,100 but maintained a Neutral rating. Goldman Sachs anticipates tight supply-demand conditions for DRAM and NAND memory chips to persist through 2027 and 2028, which should bolster Micron's pricing and earnings in the near term.

The investment bank highlights Micron's 26 Strategic Customer Agreements, which are expected to cover about 35% of revenue through fiscal 2030. Roughly 75% of these agreements carry structured pricing terms, a factor Goldman views positively as it enhances revenue and earnings visibility.

However, the firm remains Neutral due to potential headwinds from rising industry capacity, particularly as memory manufacturers respond to strong demand. Analyst James Schneider sees the key risk emerging around 2028, when new capacity could begin altering the current tight market, potentially pressuring pricing and slowing earnings growth.