Micron Stock (MU) Surges 154% YTD; Do Analysts See More Upside?

Micron Technology (MU) has risen 59% over the past month, bringing its year-to-date rally to 154%. Robust demand for memory to support the artificial intelligence (AI) boom, coupled with rising prices amid supply shortages, is driving MU stock higher. While Wall Street’s average price target currently indicates downside risk, individual price targets from top analysts reflect mixed outlooks. Let’s discuss the views of some analysts on Micron stock.

Here’s What Analysts Expect from Micron Stock

Recently, D.A. Davidson analyst Gil Luria initiated coverage of Micron stock with a Buy rating and a Street-high price target of $1,000, implying 38% upside potential from current levels. The 4-star analyst noted that while investors understand how the AI era has improved the prospects for memory, many still view Micron as a “flat, highly cyclical business, that as such can trade at less than 10x.” However, Luria added that investors are recognizing the higher profitability from high-end HBM (high-bandwidth memory), the oligopoly in the DRAM market, and the stability provided by longer-term contracts.

That said, he believes investors are still underestimating how AI will drive massive long-term demand for memory, as larger and more advanced AI models require significantly more memory.

Meanwhile, Bank of America analyst Vivek Arya raised his price targets for several semiconductor stocks. Specifically, Arya boosted his price target for Micron to $950 from $500, suggesting 31% upside potential. The 5-star analyst cited a much stronger mid-term pricing outlook in support of his revised price target. Arya is bullish on semiconductor stocks amid a strong AI infrastructure capex outlook and increased his 2030 AI data center systems total addressable market (TAM) estimate to about $1.7 trillion from nearly $1.4 trillion. Despite the recent rally in memory stocks, Arya expects memory demand to continue outpacing supply, driven by AI. He also expects memory pricing to generally hold up and earnings to remain relatively steady through 2028.

Several other analysts are bullish on Micron stock. However, their price targets indicate downside potential from current levels following a stellar rally in MU stock. For instance, Bernstein analyst Mark Li has a price target of $510 on Micron stock, which indicates 30% downside risk. Also, TD Cowen analyst Krish Sankar has a Buy rating with a price target of $660, indicating 9% downside potential. While Sankar is bullish on Micron’s prospects, he cautioned that there are concerns about gross margin correction following 2027, which might weigh on the stock in the second half of the year.

Is MU Stock a Buy, Sell, or Hold?

While most analysts remain bullish on Micron stock due to robust AI-driven demand for memory, the Street’s average price target suggests the optimism is already priced into the stock.

Overall, Wall Street has a Strong Buy consensus rating on Micron stock based on 27 Buys and three Holds. The average MU stock price target of $608.33 indicates 16% downside risk from current levels.