Micron Technology (NASDAQ: MU) has received a flurry of bullish analyst calls, with price targets reaching as high as $1,000 per share amid a powerful AI-driven rally in the memory chip sector. The stock, which surged over 40% in April alone, is now at the center of a debate over whether the current memory cycle is structurally different from historical booms.
On Monday, DA Davidson analyst Gil Luria initiated coverage with a Buy rating and a Street-high $1,000 price target, implying roughly 91% upside from Micron's recent close near $524.56. Luria's valuation is based on 10x his fiscal year 2030 earnings estimate of $139 per share, discounted back three years at a 10% rate. His bullish thesis centers on AI breaking the traditional pattern of memory cycles, noting that prior downturns were caused by a fixed demand ceiling. "Each new compute deployment unlocks new use cases, creating incremental demand that didn't exist before the infrastructure was built," Luria wrote. He also highlighted Micron's five-year supply deal signed in March — the first of its kind among memory suppliers — as evidence of the industry's shift toward long-term strategic agreements.
Separately, TD Cowen raised its price target on Micron to $660 from $550 while maintaining a Buy rating. The firm noted that long-term supply agreements are being structured with gross margin floors around 60% and ceilings in the high-80% range. TD Cowen expects Micron's earnings to beat Street estimates by about 20% in the May quarter and projects calendar 2027 EPS of $110, slightly above consensus. Near-term headwinds from gross margin transitions were flagged but considered manageable.
Two other analysts have also set $700 targets: Melius Research's Ben Reitzes initiated coverage with a Buy rating on April 27, and Cantor Fitzgerald's C.J. Muse set the same target in March. Micron's recent earnings momentum supports the bullish case: the company reported fiscal first-quarter 2026 revenue of $13.6 billion (up from $8.7 billion a year earlier), guided fiscal third-quarter revenue to $33.5 billion (above estimates), and predicted gross margin of approximately 81%. Management emphasized that market conditions are expected to remain tight beyond 2026, driven by AI data center demand and supply constraints.
High-bandwidth memory (HBM) is at the core of Micron's growth story. The company grew its HBM market share from around 5% in 2024 to approximately 21% by Q2 2025, overtaking Samsung to become the second-largest HBM supplier. Luria also flagged Micron's node leadership — four consecutive generations ahead in DRAM, three in NAND — as a compounding cost advantage.
Despite the optimism, risks remain. The stock already trades above the average Wall Street target of $472.72, suggesting it has outrun mainstream consensus. Bearish arguments highlight potential gross margin peaks, cyclical oversupply risks from $25 billion in planned capex, and the possibility that AI software may become more memory-efficient over time. UBS has echoed the supercycle thesis, suggesting the memory market could "defy traditional analytical norms." Micron stock is currently trading at a P/E ratio of 23.42.
