D.A. Davidson Assigns Micron Stock (MU) Street-High Price Target; TD Cowen Sees More Upside

Memory solutions provider Micron Technology (MU) continues to score bullish reviews from Wall Street analysts amid robust demand from AI data centers and higher pricing. On Tuesday, D.A. Davidson analyst Gil Luria initiated coverage of Micron stock with a Buy rating and a Street-high price target of $1,000, saying “artificial intelligence is creating a longer-than-usual memory cycle,” driving memory pricing and demand higher.

Moreover, TD Cowen analyst Krish Sankar reiterated a Buy rating and boosted his MU stock price target to $660 from $550.

Let’s discuss the views of these analysts on MU’s prospects.

D.A. Davidson Assigns MU Stock a Buy Rating

Luria contends that the market is still viewing the ongoing memory cycle through the lens of prior downturns and underestimating the robust demand, especially relative to the broader semiconductor sector.

The analyst sees a “meaningful” upside in MU stock, considering the company’s node leadership and a durable, long-term earnings story. Specifically, Luria’s $1,000 price target for Micron stock indicates 98% upside potential from Tuesday’s closing stock price and is based on 10x his Fiscal 2030 EPS (earnings per share) estimate of $139 per share.

Interestingly, Luria highlighted the rise of multi-year strategic customer agreements (SCAs), with Micron becoming the first memory supplier to announce a five-year supply deal in March. He explains that the transition from one-year contracts to multi-year deals significantly changes the demand visibility and pricing stability for memory suppliers.

“We are not arguing that there isn’t a cycle, just that the duration and extent of the cycle may not be priced in properly,” said Luria.

TD Cowen Raises Micron Stock Price Target

TD Cowen’s Sankar stated that his research indicates that long-term agreements (LTAs) are being structured with a gross margin of about 60% at the floor and in the high-80s% at the ceiling. From here, the analyst expects MU stock to depend more on durability than earnings upside (he sees limited additional upside in calendar year 2027). Notably, Sankar expects AGI (artificial general intelligence) CPU demand to support the duration narrative for DRAM (Direct Random Access Memory).

The analyst noted that MU stock trading at about 5x calendar year 2027 P/E already seems to imply a gross margin correction toward the 60% floor beyond 2027. Sankar highlighted that historically, the transition from peak to lower gross margin has been a near-term negative for the stock, which is why he expects shares to “climb a wall of worry” in the second half of the year.

Meanwhile, Sankar expects Micron to beat EPS estimates for the May quarter by 20% and the August quarter by 18%.

Is MU a Good Stock to Buy Right Now?

With 27 Buys and three Holds, Wall Street has a Strong Buy consensus rating on Micron Technology stock. The average MU stock price target of $574.67 indicates 14% upside potential. MU stock has rallied about 77% year-to-date.