Micron reports Q4 today: Why Lynx Equity sees massive upside

Micron Technology (NASDAQ: MU) is set to release its fiscal fourth-quarter earnings report, prompting investment firm Lynx Equity Strategies to position long on the semiconductor giant. Analyst KC Rajkumar projects massive revenue growth for Micron, forecasting top-line sales to reach $525 billion in 2028 with 80% gross margins, which underpins a bullish outlook.

Rajkumar attributes this to AI workloads transitioning from GPU and XPU hardware to CPUs, pulling memory usage toward CPU-attached LPDDR5x. Samsung is also believed to be prioritizing elevated profitability over market share, maintaining tight supply even as data center demand extends into 2029 or 2030. This, according to Rajkumar, reduces the likelihood of a supply glut in 2028/29.

The firm maintains a $1,325 price target for Micron, but notes this may understate its true conviction. Lynx's CY27 revenue forecast is approximately $350 billion with an 85% gross margin, yielding about $250 in earnings per share (EPS), representing roughly a 95% year-over-year revenue growth. Their CY28 forecast projects $525 billion in revenue, an 80% gross margin, and $325 in EPS, indicating an additional 50% top-line expansion.

This aggressive positioning comes after a period of investor complacency, with Lynx now long into the upcoming August earnings event. The firm expects management to extend demand visibility and confirm that the supply/demand imbalance will persist into 2028 and beyond. These expectations could serve as catalysts for the stock to reach new highs.