TLDR
- D.A. Davidson raised its price target on Micron to $1,500 from $1,000, citing HBM integration and long-term supply deals
- Micron trades at just over 10x forward P/E, compared to Intel’s 97x — analysts say the gap isn’t justified
- Mizuho also raised its target to $1,150 from $800, keeping an Outperform rating; Micron has surged 832% over the past year
- Mizuho forecasts 70% revenue growth and 85% EPS growth in fiscal 2027, driven by DRAM, NAND, and HBM demand
- HBM prices could rise 70%–100% year-over-year in calendar 2027; non-AI customers remain 30%–50% undersupplied
Micron Technology (MU) stock was trading around $910–$928 this week, up over 832% in the past year, as two major analyst upgrades put fresh focus on whether it’s the smarter AI chip bet compared to Intel (INTC).
D.A. Davidson analyst Gil Luria raised his price target on Micron to $1,500 from $1,000. His call came Thursday, pointing to structural changes in the memory chip market that he thinks the broader market hasn’t fully priced in yet.
Micron stock was down about 1.9% in premarket trading at $910.79 at the time of the note, but the longer-term picture Luria is painting is a bullish one.
Both Micron and Intel have more than tripled this year, riding the AI server wave. But Luria argues Micron still has more room to run.
His $1,500 target is based on 15 times his forecast for Micron’s earnings over the next 12 months — a multiple he sees as reasonable given where the company sits in the AI supply chain.
Valuation Gap With Intel
Right now, Micron trades at just over 10 times forward earnings. Intel trades at over 97 times, though Luria notes that would drop closer to 40 times if Intel can get its chip-manufacturing losses under control.
Either way, Luria says the gap between the two valuations doesn’t make sense when you look at competition dynamics.
Intel faces a largely fabless market where rivals can shift production quickly. Micron, SK Hynix, and Samsung, by contrast, hold almost the entire DRAM and HBM market between them.
“We are not aware of any competition coming,” Luria wrote, adding that a new competitor would need at least two to three years just to build the necessary fabrication facility.
That’s a moat, and the market may not be fully pricing it in at 10x forward earnings.
Mizuho’s Bullish Case for Fiscal 2027
Mizuho came in a day earlier with its own upgrade, raising Micron’s price target to $1,150 from $800 while keeping its Outperform rating.
The firm forecasts fiscal 2027 revenue up 70% year-over-year and EPS up 85%, driven by DRAM and NAND tailwinds.
Mizuho’s fiscal 2028 EPS estimate sits 41% above Wall Street consensus, driven by tight supply and pricing power it expects to persist.
HBM is a key part of that story. Mizuho expects HBM to make up 23% of Micron’s fiscal 2028 revenue, and forecasts HBM prices could rise 70% to 100% year-over-year in calendar 2027.
Agentic AI — AI systems that act autonomously — is expected to drive additional DRAM demand as it scales into 2027.
Mizuho also flagged that non-AI customers remain 30% to 50% undersupplied, adding another potential demand tailwind that has little to do with hyperscaler spending.
The stock’s PEG ratio sits at just 0.1, and revenue was already up 85.55% over the last twelve months heading into these calls.
Micron was trading near its 52-week high of $916.80 at the time of Mizuho’s note, with InvestingPro flagging the stock as currently overvalued relative to its Fair Value estimate.
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