Micron (MU) Faces Profitability Scrutiny Ahead of Q3 Earnings

Micron Technology (MU) faces investor scrutiny over the long-term sustainability of its high profitability ahead of its Q3 FY2026 earnings report, due after market close on Wednesday, June 24, 2026. Analysts are focusing on two key variables: the impact of Key-Value Cache (KV Cache) technology on memory demand and the pace of new wafer capacity expansion. Susquehanna analyst Mehdi Hosseini forecasts Micron's operating margin could decline to 60% by late 2028, despite predicting DRAM and NAND supply shortages until 2027. Hosseini set a $1,750 price target for MU, projecting a 2027 annualized EPS of $160, significantly up from $8.29 in FY2025. Morgan Stanley's Joseph Moore raised Micron's Q3 FY2026 forecast, anticipating a 20% quarter-over-quarter price increase for both DRAM and NAND. Analysts also eye Micron's Strategic Customer Agreements (SCA) for insights into future demand and valuation multiples. Micron's market capitalization has surged over $1 trillion this year, reaching approximately $1.37 trillion by June 22, 2026.