Senior Research Analyst at Rosenblatt, Kevin Cassidy, reiterated the firm’s “Buy” rating on Micron (NASDAQ: MU) and its $1,500 Micron stock price target on September 23, 2026.

The reiteration came a week ahead of Micron’s highly anticipated earnings report on September 30, and Cassidy singled out some key developments that could strengthen the case for the chipmaker.

Namely, the analyst expects additional strategic customer agreements, higher memory prices, and a potential increase in stock buybacks could support the company’s long-term trajectory.

Micron stock is inexpensive, Rosenblatt says

Cassidy believes the stock remains relatively inexpensive because investors are concerned that earnings could decline as new wafer capacity comes online. In addition, he argues artificial intelligence (AI) workloads will require increasing amounts of dynamic random-access memory (DRAM) and NAND to improve system performance.

Moreover, Rosenblatt expects Micron to announce additional strategic customer agreements in the coming quarters. As per some estimates, such deals can potentially cover up to 40% of the company’s output over the next three to five years. 

Micron has so far signed 16 SCAs covering roughly 20% of its DRAM volume and one-third of its NAND volume. According to Cassidy, the agreements are more significant than the long-term contracts used in previous memory cycles because they give Micron greater visibility while including pricing floors and customer deposits. 

In response to some of the concerns surrounding customers reducing chip specifications, Cassidy argued that customers are instead adapting to limited supply and that AI infrastructure will continue to require substantial amounts of DRAM.

Pricing to boost Micron further

Another key factor will be pricing. Notably, Rosenblatt expects average selling prices for both DRAM and NAND to increase 10% sequentially in the November quarter, potentially supporting higher gross margins. Overall, the projections model $56.5 billion in revenue and an 86% gross margin, while noting that stronger-than-expected pricing could provide additional upside.

As for share repurchases, Restrictions on Micron’s ability to buy back shares are scheduled to expire in December. Accordingly, Cassidy expects management could discuss expanding buybacks during fiscal 2027, which began earlier this month.

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