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Memory stocks fell sharply this week, dragging the biggest memory names lower. Wall St.’s 24/7 price target for Micron technology (NASDAQ: MU | MU Price Prediction) is $913.86 over the next 12 months. With the stock at $688.09, that represents an increase of 32.8%. The model’s output signal shows a buy, with high confidence.
Wall Street 24/7 Price Target Summary
| Metric | Value |
|---|---|
| Current price | $688.09 |
| 24/7 Wall St price target. | $913.86 |
| Up/Down | 32.8% |
| Recommendation | BUY |
| Confidence level | 90% |
Micron just finished a fiscal year with $133.19 billion in revenue and $75.52 in non-GAAP EPS. Despite this, the stock trades at around 9 times current earnings and 4 times forward EPS estimates.
AI accelerator makers get most of the attention on AI, but Micron sells the memory that makes those accelerators work, and its valuation reflects almost none of that role (we covered seven AI infrastructure providers beyond chipmakers in a free report you can grab here).
A 30% weekly drop hides a record year
Micron is down 30.02% over the past week, 35.32% over the past month, and 13.47% today alone. It is still up 141.28% since the start of the year. Shares are 45.2% below the 52-week high of $1,254.61.
Memory counterpart SanDisk (NASDAQ:SNDK) is also down as today’s selling hit Micron, SanDisk and other AI names. Headlines include concerns over market share and a pause at a Taiwan factory after a labor dispute.
The fundamentals tell a stronger story. In the fiscal fourth quarter, revenue reached $54.23 billion versus an estimate of $50.97 billion. Non-GAAP EPS came in at $33.42 versus the consensus of $31.35, Micron’s 8th consecutive beat. The gross margin reached 87%. For the fiscal first quarter, management has set revenue of $61.5 billion ± $1.5 billion and EPS of $38.15 ± $1.00.
Why Bulls See $1,342 Ahead
Management said more than 75% of fiscal 2027 shipments are already committed. Micron now has 26 strategic customer agreements in progress through 2030. Executives called DRAM “the primary constraint to data center logic or power.”
Micron has also increased HBM prices for the 2027 calendar and is co-designing the HBM4E with Nvidia (NASDAQ:NVDA). The analyst consensus target is $1,561.91, supported by 9 Strong Buy ratings plus 36 Buy ratings. The bull case is $1,342.01, an increase of 95.0%.
What could derail Micron’s AI operation
Memory has always been cyclical, and investments for fiscal 2026 reached $30.71 billion. A significant portion of HBM’s sales goes to a small group of customers. Taiwan factory pause and market share questions add to execution risk.
The bear case of $691.64 would leave the stock roughly flat for a year. As for spending, most of the new construction budget is dedicated to clean rooms for 2028, and management will add equipment based on demand. Free cash flow of $62.31 billion easily covers these expenses.
Micron trades at a deep discount against NVIDIA and SanDisk
NVIDIA is Micron’s largest HBM partner. Its $279 billion in procurement obligations are largely tied to the purchase of memory for Vera Rubin. With 40x earnings and 105.85% revenue growth, NVIDIA has a much higher multiple than Micron for slower growth. SanDisk is the closest memory counterpart. Its revenue increased by 377.95%, but it still trades at 13x.
| Business | Trailing P/E | Gross margin for the last quarter | Revenue growth (year-over-year) |
|---|---|---|---|
| Micron | 9x | 87.0% | 379.3% |
| Nvidia | 40x | 71.1% | 105.85% |
| SanDisk | 13x | 85.0% | 377.95% |
Compared to these peers, our price target on Wall St. 24/7 appears conservative.
Micron trades at single-digit multiple after sale
The Wall St. 24/7 price target is $913.86 with a Buy rating and 90% confidence level. The deciding factor for me is demand contracted to a single-digit multiple.
The thesis strengthens if the first fiscal quarter comes closer to forecasts and if more SCAs are signed. The thesis weakens if DRAM prices are rolled over or if Taiwan’s delay extends to other projects.
| Year | 24/7 Wall St price target. |
|---|---|
| 2026 | $913.86 |
| 2027 | $935.62 |
| 2028 | $1,085.20 |
| 2029 | $1,237.82 |
| 2030 | $1,353.68 |
The projections are based on Micron continuing to execute on HBM and its long-term customer agreements. A faster HBM4E ramp could pull the results well above them, and a change in the memory cycle could pull them well below them.
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Gn bussni
