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‘Load Up,’ Says Top Analyst on Micron Stock (MU) With 27% Upside Ahead

‘Load Up,’ Says Top Analyst on Micron Stock (MU) With 27% Upside Ahead

Micron Technology (MU) stock has climbed about 28% over the past year, trading at $122 as of August 28. In a new note, CLSA analyst Sanjeev Rana has initiated coverage on Micron with an Outperform rating and a price target of $155, implying 27% upside from current levels. Rana sees Micron as a key beneficiary of rising AI spending, pointing to strong demand for high-bandwidth memory (HBM), steady pricing in DRAM, and signs of recovery in NAND.

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Why Rana Is Bullish on Micron

The 4-star analyst highlighted Micron’s faster-than-expected ramp in HBM3E chips, which are already being supplied to major customers such as Nvidia (NVDA), Advanced Micro Devices (AMD), and large cloud players. He expects HBM to account for nearly 40% of Micron’s DRAM revenue by FY27, compared to 21% in FY25. He believes this shift to higher-value memory will lift margins and reduce the volatility in earnings.

On conventional DRAM, Rana notes that supply remains tight as producers shift more wafer capacity to HBM, which uses three to four times more wafers than standard products. With inventories at both suppliers and customers running low, he expects DRAM prices to stay strong through 2026, despite normal seasonal fluctuations.

For NAND, Rana sees signs of recovery as demand for enterprise SSDs picks up and suppliers hold back on aggressive spending.

The analyst sets Micron’s price target at 2.4x FY26 book value, a premium to its historical average. He believes the company’s move toward AI-focused, customized memory products supports a higher multiple. However, he also warned of risks, including softer IT device demand, slower cloud spending, or a quicker ramp-up from Chinese competitors.

Is Micron a Good Stock to Buy?

Micron stock has a consensus Strong Buy rating among 28 Wall Street analysts. That rating is based on 24 Buy and four Hold recommendations assigned in the last three months. The average MU price target of $152.08 implies 24.66% upside from current levels.

Read more analyst ratings on MU stock

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