TLDR
- Micron (MU) fell 5% to around $1,036 after reaching an all-time high near $1,255.
- D.A. Davidson’s Gil Luria raised his price target to $3,000 from $2,100, keeping a Buy rating.
- Melius Research’s Ben Reitzes has a $2,200 target, citing a forward P/E of just 7.
- Fiscal Q4 revenue hit $54.23 billion, up 379% year-over-year, with EPS of $33.42.
- Micron’s HBM4 capacity is sold out for 2026, with a backlog of $150 billion.
Micron Technology (MU) stock is down 5% to roughly $1,036 after pulling back from its all-time high near $1,255. The drop hasn’t dented Wall Street’s enthusiasm. If anything, analysts are getting more bullish by the week.
D.A. Davidson analyst Gil Luria raised his price target to $3,000 from $2,100 on October 7. He kept his Buy rating in place. That target implies the stock could nearly triple from current levels.
Luria’s thesis is straightforward. He expects the memory chip shortage to last through 2027 and 2028.
He pointed to the biggest buyers of memory chips as the reason. Amazon, Microsoft, Alphabet’s Google, Nvidia and Apple are all locking in long-term supply deals.
“If you don’t buy it, they will,” Luria said, describing the scramble for capacity.
Melius Research analyst Ben Reitzes has his own bullish case. His price target sits at $2,200.
Why Wall Street Keeps Raising Targets
Reitzes argues Micron’s multiple has room to grow. The stock trades at a forward P/E of just 7, far below compute storage peers in the low to mid 20s.
Jim Cramer discussed Micron on CNBC this week too. He said Toshiba’s recent announcement has only a “very low indirect impact” on Micron and its peers.
Cramer also speculated that CEO Sanjay Mehrotra could announce a buyback bigger than any in history, including Nvidia’s. He suggested the number could reach 10% over time.
The fundamentals support the optimism. Micron’s fiscal Q4 revenue hit $54.23 billion, up 379% year-over-year.
Non-GAAP diluted earnings per share came in at $33.42, compared to just $3 a year earlier. Gross margins expanded by 41 percentage points to 87%.
DRAM revenue, which makes up 73% of total sales, grew 343% annually. NAND revenue jumped 526% to $14.10 billion.
Micron’s HBM4 memory chip capacity is already sold out for 2026. The company also secured $32 billion in new supply commitments during the quarter.
Its backlog swelled to $150 billion, up from $100 billion the prior quarter. That gives management plenty of visibility into future demand.
The Flip Side of Rapid Growth
To keep up with demand, Micron plans to spend $200 billion on capital expenditure. That’s a massive bet on the memory shortage lasting.
It also exposes the company to the industry’s classic overcapacity risk. If demand cools, that spending could backfire quickly.
Rival SK Hynix is growing fast too, with Q2 revenue up 257%. But Micron has been gaining market share, moving from 22% to 24% of the global DRAM market between Q1 and Q2.
SK Hynix trades at an even lower forward P/E of 5.4. That could mean the market expects a cyclical peak and eventual price normalization.
Hedge fund interest in Micron is climbing. A total of 184 funds held a stake in Q2, up sharply from 154 in Q1.
Short interest as a share of the float remains low. For now, Wall Street’s bet is squarely on the bulls.
Chart analysis
Micron’s daily chart shows a strong uptrend since April, with the stock recently pulling back from its all-time high of $1,255 to test the $1,035 key support zone, a level that also acted as resistance back in July and August. The $900 level below marks the next key support if the pullback deepens, while a rising trendline from the July low continues to support the broader advance.
The RSI sits at 51, suggesting momentum has cooled from overbought territory without turning bearish. The MACD line sits below the signal line in slightly negative territory, pointing to fading short-term momentum, though the histogram shows the gap narrowing, a sign sellers may be losing steam near this support zone.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
