Micron (NASDAQ:MU) stock has been on a remarkable run over the past year, driven by surging demand for its memory products, which has fueled strong gains in revenue and profitability. So, congrats – if you’ve been a Micron shareholder over that period, you’re sitting on gains of no less than 614%.
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By every metric, Micron delivered a blowout earnings report last month. Revenue of $23.9 billion rose 75% sequentially and 196% year over year, while consolidated gross margin reached a remarkable 75%. Moreover, the company’s guidance for the current quarter came in well above consensus estimates. Hitting the projected $33.5 billion in Q3 2026 sales would mark a massive jump from the $9.3 billion reported a year earlier.
Despite the incredible gains over the past year, one investor, known by the pseudonym J Thesis, doesn’t think it’s too late to jump on board the MU express.
“I see further upside driven by strong quarterly results and robust AI-related demand,” J Thesis notes, pointing to estimates that the data center market could approach $1 trillion within the next six years, roughly 2.5 times its current size. While past performance doesn’t guarantee future results, AI-driven demand has so far translated into meaningful gains for MU shares – and that trend may not be over just yet.
MU is still trading at a roughly 9x forward price-to-earnings ratio. Considering that the sector median is greater than 20x, J thinks it’s only a matter of time before a re-rating occurs. “A big rally makes one think it’s over, but valuation says it may not [be],” the investor adds.
J Thesis expects some serious FOMO to kick in among investors if the company continues to deliver stellar numbers through the end of the year, further supporting the bull case.
“I believe MU has room for error and could outperform the S&P 500,” J Thesis sums up, rating MU shares a Strong Buy. (To watch J Thesis’ track record, click here)
Wall Street is singing a similar tune. Micron stock boasts a Strong Buy consensus from 30 analysts, including 27 Buys and 3 Holds. Still, price targets are more grounded, with the average at $574.67 – roughly in line with current levels. Investors may want to check the Micron stock forecast page below, as price target revisions are expected to pick up in the coming weeks. (See MU stock forecast)
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.