Micron Stock Trending as Analysts Eye AI Upside

Micron Technology (MU) stock has risen 9.6% over the past week, 38.7% in the last month, and an eye-catching 280.5% over the past 12 months. Despite this powerful run, Wall Street’s analysts remain strongly positive, with a consensus rating of StrongBuy and a 12-month average price target of $374.35 versus the last closing price of $397.58. This target implies modest downside in the near term after a big rally, but analysts still see Micron as a key beneficiary of one of the most important technology shifts of this decade: the AI-driven memory cycle.

One of the latest voices weighing in on Micron is analyst Sebastien Naji, who has initiated coverage with a Buy rating and a price target of $450.00. That target sits meaningfully above the current share price, signaling that he expects more upside ahead even after Micron’s explosive gains over the last year. Naji is ranked 3,631 out of 11,984 analysts, with a success rate of 53.19% and an average return of 8.40% per rating, underscoring a solid, if not top-tier, track record on Wall Street.

In his report, Naji describes Micron as a U.S. semiconductor stalwart and one of the three major global memory suppliers, alongside Samsung and SK Hynix. He argues that a “memory supercycle” is now driving record profitability, as access to memory has become a critical bottleneck in AI racks and systems. With demand rising for higher bandwidth, more performant memory, and supply expected to remain tight into 2027, Naji believes Micron is well positioned to benefit from higher selling prices and a richer mix of higher-margin products. He forecasts that Micron can grow its non-GAAP earnings per share by more than 275% over the next two years.

A key driver in this bullish view is Micron’s exposure to high-bandwidth memory, or HBM, a new class of DRAM designed specifically for AI GPUs and ASICs. As large language models become more complex and require larger context windows, HBM has become a crucial component in AI infrastructure. Naji notes that, as next-generation chips add more HBM, memory represents a growing share of the AI infrastructure bill of materials. As the No. 2 player in this market, Micron is expected to grow its HBM revenue by 164% in fiscal 2026 and 40% in fiscal 2027, while its DDR and QLC NAND lines should also benefit from AI-related demand.

However, Naji also highlights several risks that investors should watch. Samsung’s renewed strength in HBM, including qualification of its HBM3e with Nvidia and partnerships with Google and Broadcom, could challenge Micron’s momentum. Heavy capital spending—around $20 billion in fiscal 2026—could shift value toward equipment suppliers and pressure free cash flow. An improvement in the overall DRAM supply-demand balance could hurt pricing and margins, and chip vendors could claw back some HBM value by designing their own base logic dies. Even so, Naji notes that Micron, despite being up more than 300% in the past two years and trading at about 9.7 times his 2026 earnings estimate (just below its historical average multiple of 11), still has room to run as part of a multi-year AI-driven product cycle. Never miss a stock rating. Find all the latest ratings on TipRanks’ Top Wall Street Analysts page.