What TD Cowen’s $60 EPS Call Means for Micron Technology (MU)

Rizwan Siddiqui

Tue, February 24, 2026 at 3:22 PM GMT+9 2 min read

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  MU

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Micron Technology Inc. (NASDAQ:MU) is among the 15 Undervalued Momentum Stocks That Are Taking Off. According to a February 9 report, TD Cowen raised its long-term earnings outlook for Micron Technology Inc. (NASDAQ:MU). The firm now expects that MU’s EPS may reach as much as $60 in 2026, above its prior bull-case assumption of $50. The revision reflects the firm’s view that structural supply capacity issues in the DRAM market are likely to persist for multiple years. This implies that the company may continue to witness stronger pricing and margin development, better than previously anticipated. TD Cowen outlines a “gradual re-rating path” toward a 12x multiple applied to a normalized earnings base of roughly $50 per share, which underpins its longer-term upside thesis. According to the firm’s estimates, better-than-expected earnings growth could lead to a stock price of $600 over time.

What TD Cowen’s $60 EPS Call Means for Micron Technology (MU)

Micron Technology Inc. (NASDAQ:MU) received a further boost when its management strongly backed its HBM4 product at Wolfe Research’s Autos/Semis conference on February 11. Notably, the leadership said they expect to start shipping the product in the current quarter rather than next, as previously guided. They also mentioned that demand is “significantly higher” than its supply capacity, thus underpinning demand trends beyond 2026. The performance of Micron Technology Inc. (NASDAQ:MU) shares has been stunning, with 240% returns in 2025 and 50% rally so far in 2026. The stock currently trades 6% below its 52-week high of $455.5. Micron Technology Inc. (NASDAQ:MU) designs, develops, manufactures, and markets memory and storage products, including dynamic random-access memory (DRAM), flash memory (NAND), solid-state drives (SSDs), and High Bandwidth Memory (HBM) globally. While we acknowledge the potential of MU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT:  12 Best Software Infrastructure Stocks to Buy According to Hedge Funds and Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy. Disclosure: None. This article is originally published at Insider Monkey.

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