Micron Trending With Analysts Amid AI Memory Supercycle

Micron Technology (MU) stock has risen 15.589816712711285387517452400% over the past week, 40.900202780996523754345307070% over the past month, and an eye‑catching 257.40791770000918526683200147% over the past twelve months. Despite this powerful rally, the average 12‑month price target from Wall Street stands at 371.3200 USD versus a last closing price of 389.110 USD, suggesting the stock currently trades modestly above consensus. Even so, the overall analyst view is far from cautious: the consensus rating on Micron is a StrongBuy, signaling that many on the Street still see room for the AI‑driven memory story to play out.

Wall Street’s analysts are broadly bullish, forecasting that Micron’s current run is supported by structural demand rather than a fleeting boom. The StrongBuy consensus comes even as the formal average price target sits below the current share price, reflecting that some models may not yet be fully updated to the latest rally. For investors, this mix of a stretched chart and strong conviction from experts underscores the debate around whether Micron’s valuation already prices in the next leg of AI growth—or whether the industry is on the verge of a longer “supercycle.”

One of the latest voices weighing in is analyst Sebastien Naji, who has initiated coverage on Micron with a Buy rating and a price target of 450.0000 USD. That target stands notably above both the 371.3200 USD Street average and the recent 389.110 USD close, pointing to additional upside in his view. Naji’s call contributes to the StrongBuy consensus and signals that, at least for some analysts, the market may still be underestimating Micron’s earnings power as the AI build‑out accelerates.

Naji’s report frames Micron as a key winner in what he calls a “memory supercycle” that is driving record profitability. As one of the three major global memory suppliers, Micron sits at the center of a bottleneck: access to high‑performance memory for AI systems. He highlights surging demand for high‑bandwidth memory (HBM), a specialized form of DRAM designed for AI GPUs and ASICs, as model sizes and context windows expand. As the No. 2 player in HBM, Micron is expected, according to Naji, to grow HBM revenue 164% in fiscal 2026 and 40% in fiscal 2027, with additional AI tailwinds for its DDR and QLC NAND products. He also projects non‑GAAP EPS growth of over 275% over the next two years, arguing that tight supply into 2027 and higher‑margin products support this. At the same time, he flags important risks: a renewed competitive push from Samsung in HBM, heavy capex that shifts value toward equipment suppliers, a potential easing in DRAM supply tightness that could pressure pricing and margins, and the possibility that chip vendors design their own logic dies and claw back some HBM economics.

On the valuation front, Naji notes that Micron shares have already climbed more than 300% over the last two years and now trade at a forward P/E of 9.7 times his 2026 estimate, only slightly below the stock’s historical average multiple of 11 times. He argues that, while expectations are clearly elevated, the valuation is “not unreasonable” compared to other AI semiconductor names, especially if the multiyear AI‑driven product cycle and tight supply environment play out as expected. For investors watching Micron’s rapid rise and the increasingly crowded AI trade, his conclusion is clear: despite the risks, the combination of strong structural demand, constrained supply, and rising earnings keeps the stock firmly on his Buy list. Never miss a stock rating. Find all the latest ratings on TipRanks’ Top Wall Street Analysts page.