Investing.com -- Here are the biggest analyst moves in the area of artificial intelligence (AI) for this week.
Micron to report ’another strong quarter’, Goldman says
Goldman Sachs has sharply raised its price target on Micron to $900 from $400, lifting revenue and adjusted earnings per share (EPS) estimates by 28% and 36% on average for 2026 and 2027, ahead of the company’s fiscal third-quarter results later this month. The bank maintained its Neutral rating.
Analysts led by James Schneider expect Micron to deliver roughly 9% upside to Street revenue in the quarter, forecasting revenue, gross margin and EPS of $37.6 billion, 83.4% and $22.07, respectively, against consensus of $34.4 billion, 81.9% and $19.74.
For the August quarter, Goldman projects revenue of $48.8 billion versus consensus of $40.4 billion, with full-year 2026 revenue and EPS estimates sitting 30% and 36% above the Street.
The primary driver is ongoing market tightness. "We expect tight conditions to persist throughout CY27 and to result in increased pricing and margins for the industry," the analysts wrote, with supply and demand conditions expected to remain tight throughout 2027.
Goldman expects investor attention to focus on Micron’s Strategic Customer Agreements (SCAs) — long-term contracts that lock in supply commitments and potentially include pricing guarantees.
"We believe investor positioning remains very bullish given the dramatic share price run-up and optimism around the potential impact of long-term customer agreements," the analysts said.
They also noted investors expect Micron to maintain or expand its roughly 20% share in high-bandwidth memory, with conventional DRAM pricing providing additional upside.
Wolfe Research initiates SpaceX at Buy, flags "ocean of opportunity"
Wolfe Research earlier this week initiated coverage of Elon Musk’s Space Exploration Technologies with an Outperform rating and a $175 price target.
The move came ahead of the company’s Nasdaq debut after pricing the largest-ever U.S. IPO at $135 a share. The offering raised a record $75 billion, valuing the rocket, satellite and AI company at $1.77 trillion.
Analysts Myles Walton and Peter Supino argued that SpaceX’s push toward near-zero launch costs creates a competitive position few rivals can credibly challenge, projecting 70% top-line growth and a near-doubling of EBITDA margins through 2030.
"SpaceX turned a competitive moat into an ocean of opportunity that we don’t see others crossing," they wrote.
The bull case rests heavily on Starship, the next-generation fully reusable rocket still in testing. Wolfe estimates successful reusability would cut incremental launch costs from roughly $14 million per Falcon 9 flight to under $5 million for Starship, with minimum costs approaching $1 million in fuel.