Micron’s (MU) Price Target More Than Doubled to $650 from $315. Here’s Why

Micron Technology MU +1.26% ▲ received a positive vote of confidence from Wall Street after Aletheia Capital analyst Warren Lau raised his price target to a new Street-high of $650. The target implies about 75.5% upside from current levels and marks a 106% jump from his previous target of $315. Lau raised his outlook after lifting Micron’s earnings forecasts, citing strong demand for memory chips used in artificial intelligence.

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The memory chip maker is set to report its Q2 results for FY26 on March 18, with Wall Street looking for EPS of $8.52 on revenues of $18.85 billion.

Why Lau Is Bullish on Micron

Lau said the surge in AI training and inference workloads is driving strong demand for high-bandwidth memory (HBM). At the same time, the rise of agentic AI applications is increasing the need for other memory types such as server DRAM, SRAM, and CXL-based memory systems. Reflecting this demand outlook, the analyst doubled his FY26 earnings estimates and tripled his FY27 forecasts.

Another key factor behind the bullish view is tight supply across the memory industry. Lau noted that new DRAM and NAND capacity is expected to remain limited through 2026 and 2027, with new NAND cleanrooms unlikely before 2028. This supply constraint could keep memory prices strong for longer than expected.

Lau believes Micron could grow into one of the world’s largest chip suppliers in the coming years. He also expects the company to generate $150 billion to $200 billion in cash flow between FY26 and FY27, giving it significant financial flexibility.

However, the analyst noted that risks remain, including changes in demand, execution challenges, and geopolitical tensions that could affect the semiconductor industry.

Is Micron a Good Stock to Buy Now?

Micron stock has a consensus Strong Buy rating among 28 Wall Street analysts. That rating is based on 27 Buy and one Hold recommendations assigned in the last three months. The average MU price target of $426.41 implies 15.15% upside from current levels. Over the past year, MU shares have skyrocketed nearly 300%.

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