It’s been a roller coaster ride for Micron (NASDAQ:MU) recently. The stock dropped about 30% from its March 18 high to its March 30 low, only to reverse course and power higher, climbing 39% in a sharp rebound as easing tensions in the Middle East helped stabilize broader market sentiment.
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Beyond the macro backdrop, Micron’s positioning helps explain why investors have been willing to step back in. The company is one of only a handful of firms capable of delivering the highly sought-after memory products required to power demanding AI workloads.
Micron’s Q2 2026 earnings left little doubt regarding its high-flying business, with quarterly revenue reaching $23.9 billion, up 75% sequentially and 196% year over year. Moreover, the company’s consolidated gross margin of 75% points to significant pricing power.
And yet, despite those numbers, the stock sold off following the report, as geopolitical tensions weighed on sentiment, while concerns about the cyclical nature of the memory business resurfaced, with history showing that periods of tight supply and strong pricing rarely last forever.
So, which side is right?
Count investor James Hires among the bulls. In his view, the current shortage is not a fleeting imbalance but a structural shift driven by AI demand, suggesting the cycle could stay tighter for longer than many expect – a backdrop that underpins a highly constructive outlook for Micron from here.
“I think Micron is going to hit at least $1,000 per share and might even be able to go above $1,200,” predicts the investor.
Skeptics will point out that high prices typically invite new supply. But that’s precisely where the usual playbook runs into friction. As Hires explains, expanding memory production is neither quick nor straightforward. Building new fabs requires massive capital, advanced engineering, and years of execution, which could keep the supply-demand balance tighter for longer than many investors are accustomed to.
Hires cites multiple industry insiders who support this view, including the chairman of SK hynix, Chey Tae-won, one of the only other firms capable of producing these memory products. Chey has predicted that the memory shortage could last until 2030.
Taking the company’s expected 2026 EPS in the high $50s and assuming MU continues to trade at its current trailing twelve-month P/E ratio in the low 20s, Hires calculates that MU’s share price would easily surpass the $1,000 mark.
“The math is clear: Micron should not be as low as it is right now,” states Hires, who rates the stock a Strong Buy. (To watch Hires’ track record, click here)
Wall Street may not be calling for four-digit territory, but the tone remains firmly bullish. Micron holds a Strong Buy consensus, with 25 Buys versus just 3 Holds, and an average price target of $543.20, implying about 21% upside. (See MU stock forecast)
Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.