When Micron Technology Inc. (MU) reported earnings Wednesday, the memory chip maker didn't just beat expectations. It smashed them and then issued guidance so strong that Wall Street spent Thursday morning frantically updating spreadsheets.

The numbers tell the story. Micron posted first-quarter revenue of $13.64 billion against analyst estimates of $12.83 billion. Adjusted earnings came in at $4.78 per share, well ahead of the $3.95 consensus. But the real jaw-dropper was the outlook for the current quarter.

Micron expects second-quarter revenue of $18.7 billion, plus or minus $400 million. Analysts had been modeling $14.16 billion. That's not a modest beat, that's roughly $4.5 billion above expectations. The company also guided for adjusted earnings of $8.42 per share, plus or minus 20 cents, for the second quarter.

"In fiscal Q1, Micron delivered record revenue and significant margin expansion at the company level and also in each of our business units," said Sanjay Mehrotra, chairman, president and CEO of Micron.

The market responded accordingly. Micron shares jumped 11.4% to trade at $251.54 on Thursday as investors digested the implications of the guidance surprise.

The Analyst Response

Following the earnings announcement, analyst after analyst raised their price targets on Micron, with some making substantial moves:

• B of A Securities analyst Vivek Arya not only raised the price target from $250 to $300 but upgraded the stock entirely from Neutral to Buy.
• Rosenblatt analyst Kevin Cassidy maintained his Buy rating and boosted his price target from $300 to $500, the most aggressive target on the Street.
• Mizuho analyst Vijay Rakesh kept his Outperform rating and lifted his target from $270 to $290.
• Piper Sandler analyst Harsh Kumar maintained an Overweight rating while raising his target from $200 to $275.
• Raymond James analyst Melissa Fairbanks stuck with her Outperform rating and significantly increased her price target from $190 to $310.
• Morgan Stanley analyst Joseph Moore maintained his Overweight rating and pushed his already-bullish price target from $338 to $350.
• Keybanc analyst John Vinh kept his Overweight rating and raised his target from $215 to $325.
• Cantor Fitzgerald analyst C.J. Muse maintained his Overweight rating and lifted his price target from $300 to $350.
• Wedbush analyst Matt Bryson held his Outperform rating and increased his target from $300 to $320.
• Wells Fargo analyst Aaron Rakers maintained an Overweight rating while boosting his price target from $300 to $335.
• UBS analyst Timothy Arcuri kept his Buy rating and raised his price target from $295 to $300.

The consensus is clear: Wall Street believes Micron's memory chip business is hitting its stride, with demand and margins both moving in the right direction.