Analysts Bullish on Oracle and Micron Amid AI Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 06 2026
0mins
Source: seekingalpha
- Oracle Upgrade Analysis: Analysts upgraded Oracle from Sell to Buy, noting that despite a 24% stock decline, the momentum in cloud computing and AI infrastructure is strong, particularly with multicloud database revenue surging 531% YoY, showcasing the company's competitive edge in the market.
- Micron's Positive Outlook: Micron's rating was raised from Sell to Neutral, with analysts highlighting unprecedented revenue growth driven by AI demand, although long-term cyclicality risks remain a concern, especially as the stock trades under 4x FY27 earnings expectations.
- LATAM Airlines Downgrade: Analysts downgraded LATAM Airlines from Buy to Sell due to a potential 80% spike in jet fuel costs stemming from geopolitical conflicts, which are expected to severely impact the company's aggressive growth plans and 2026 margin forecasts of 11% revenue growth and a 27% EBITDA margin.
- Super Micro Computer Risks: Super Micro Computer's rating was lowered to Sell due to intensifying legal and regulatory risks, including employee indictments and shareholder lawsuits, which present systemic concerns that outweigh the recent valuation contraction and could threaten the company's foundational operations.
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Analyst Views on MU
Wall Street analysts forecast MU stock price to fall
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 1087.990
Low
235.00
Averages
336.12
High
500.00
Current: 1087.990
Low
235.00
Averages
336.12
High
500.00
About MU
Micron Technology, Inc. provides memory and storage solutions. The Company delivers a portfolio of high-performance dynamic random-access memory (DRAM), NAND, and NOR memory and storage products through its Micron and Crucial brands. The Company's products enable advancing in artificial intelligence (AI) and compute-intensive applications. Its segments include Cloud Memory Business Unit (CMBU), Core Data Center Business Unit (CDBU), Mobile and Client Business Unit (MCBU) and Automotive and Embedded Business Unit (AEBU). CMBU is focused on memory solutions for large hyperscale cloud customers, and high bandwidth memory (HBM) for all data center customers. CDBU is focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers. MCBU is focused on memory and storage solutions for mobile and client segments. AEBU is focused on memory and storage solutions for the automotive, industrial, and consumer segments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
TD Cowen Raises Micron Price Target Significantly Ahead of Earnings
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- Earnings Forecast Upgrade: Sankar expects Micron to earn $23 per share in Q3, surpassing Wall Street's estimate of $20, and this positive earnings outlook is likely to boost investor confidence and attract more buying interest.
- Market Focus Areas: Investors will closely monitor updates in Micron's upcoming earnings report regarding pricing, AI server demand, and long-term customer agreements, as these factors could shape expectations for 2027 and further influence stock price movements.
- Market Cycle Confidence: Despite Micron's significant stock price rally this year, TD Cowen's price target increase indicates confidence in the current memory cycle, suggesting that there may still be room for further development in this cycle, enhancing market optimism about Micron's future performance.
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- Earnings Forecast Upgrade: Sankar expects Micron to earn $23 per share in Q3, surpassing Wall Street's estimate of $20, and this positive earnings outlook is likely to boost investor confidence and attract more buying interest.
- Market Focus Areas: Investors will closely monitor updates in Micron's upcoming earnings report regarding pricing, AI server demand, and long-term customer agreements, as these factors could shape expectations for 2027 and further influence stock price movements.
- Market Cycle Confidence: Despite Micron's significant stock price rally this year, TD Cowen's price target increase indicates confidence in the current memory cycle, suggesting that there may still be room for further development in this cycle, enhancing market optimism about Micron's future performance.
See More
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- Strong Tech Performance: Over the past decade, the iShares U.S. Technology ETF has achieved a total return of 865%, significantly outperforming the S&P 500's 207%, indicating the immense investment potential within the tech sector and attracting more investor interest.
- Semiconductor-Driven Growth: Nearly half of the ETF's portfolio is allocated to semiconductor stocks, which are experiencing rising demand due to the booming AI technology, suggesting that the ETF's growth potential could further increase as AI continues to thrive.
- Importance of Investment Strategy: While ETFs offer diversified investment options, the volatility of tech stocks in the short term makes a long-term investment strategy crucial for wealth accumulation, prompting investors to choose wisely.
- Intense Market Competition: Despite the strong performance of the iShares U.S. Technology ETF, analysts note that there are currently 10 other stocks considered better investment opportunities, urging investors to pay attention to these potential high-return options.
See More
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- Year-End Target Raised: Wells Fargo strategist Ohsung Kwon has raised the S&P 500 year-end target to 7,950, implying over 5% upside from Monday's close, reflecting a bullish outlook on the market.
- Expectation of Broad Rally: Kwon noted that with money flowing into parts of the market untouched by AI, an 'everything rally' is expected this summer, which could support cyclical stocks at the expense of defensives.
- Strong Semiconductor Performance: The PHLX Semiconductor index has nearly doubled in 2026, with companies like Micron, Arm, Marvell, and Intel seeing stock price increases of over 200%, indicating robust growth in the semiconductor sector driving overall market performance.
- Positive Macro Signals: Kwon's PRSM framework indicates that profits and liquidity remain strong, market sentiment has reset to neutral after a sell-off, and macroeconomic concerns have eased due to the Iran deal, suggesting potential for further gains ahead.
See More
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- Significant Revenue Growth: Jabil reported a 23% year-over-year revenue increase to $8.3 billion in fiscal Q2 2026, compared to flat revenue in the same quarter last year, indicating strong demand driven by AI, which is expected to enhance market share further.
- Upgraded Earnings Expectations: The company’s revenue guidance for fiscal Q3 2026 is set at $8.5 billion, reflecting a 9% year-over-year increase, with an EPS midpoint of $3.03, suggesting a 19% growth in earnings that will bolster investor confidence and potentially drive stock prices higher.
- Surging AI Revenue: Jabil anticipates a 46% increase in AI revenue this year to $13.1 billion, primarily fueled by skyrocketing demand for AI servers, with management hinting at a possible upward revision of AI revenue forecasts, further solidifying its market position.
- Attractive Valuation: Jabil's stock trades at a 52 times earnings ratio, but its forward P/E of 28 indicates substantial future earnings growth potential; considering the AI server market is projected to expand at a 34% annual rate through 2030, investors may find this an opportune time to buy in.
See More
Jabil's Quarterly Results Expected to Exceed Expectations
- Earnings Growth Outlook: Jabil anticipates its fiscal Q3 2026 revenue to reach $8.5 billion, reflecting a 9% year-over-year increase, with earnings per share expected at $3.03, indicating a 19% growth compared to last year, showcasing the company's robust growth potential amid surging AI server demand.
- Surge in AI Revenue: The company expects a 46% increase in AI revenue to $13.1 billion, primarily driven by strong demand for AI servers, and this growth trend may be further confirmed in the upcoming earnings report.
- Customer Expansion Opportunities: Jabil's management noted during the earnings call that they are on track to add a third hyperscaler customer, which will provide strong support for the company's future performance and could drive stock price increases following the earnings report.
- Optimistic Market Outlook: With the AI server market projected to grow at an annual rate of 34% through 2030, Jabil's long-term growth prospects appear promising, making it an attractive stock for investors looking to capitalize on future market opportunities.
See More
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- Strong Market Demand: Following a historic $2 trillion IPO, SpaceX's stock surged 20% on Monday, indicating robust appetite in the U.S. equity market for another tech giant, potentially attracting more investors to high-growth tech companies.
- Options Market Dynamics: The options market will reveal investor sentiment towards SpaceX on Tuesday, with expectations about its future performance influencing stock price volatility, especially amid the recent surge in AI and semiconductor stocks.
- Profitability Challenges: Despite SpaceX's valuation exceeding $1 trillion, it reported a net loss of $4.28 billion in the latest quarter, making it the only publicly traded stock over $1 trillion that remains unprofitable, which may affect investor confidence.
- Impact of Zero-Commission Trading: Robinhood's zero-commission trading model is seen as a key factor in Elon Musk's wealth growth, enabling more retail investors to engage in high-risk investments, further propelling SpaceX's market performance.
See More
