Micron (MU) Stock Soars With Back-to-Back Analyst Upgrades

Table of Contents Micron Technology (MU) stock hovered between $910 and $928 this week, reflecting a staggering 832% climb over the past year, as consecutive analyst upgrades sparked renewed debate over whether it represents a superior AI semiconductor investment compared to Intel (INTC). Micron Technology, Inc., MU D.A. Davidson’s Gil Luria elevated his price objective for Micron to $1,500 from $1,000 on Thursday. His bullish stance centers on fundamental shifts within the memory chip sector that he believes remain underappreciated by the broader investment community. Micron stock dipped approximately 1.9% in premarket action to $910.79 when the report was issued, though Luria’s long-term outlook remains decidedly optimistic. Both Micron and Intel have more than tripled in value this year, benefiting from accelerating AI server deployment. However, Luria contends that Micron’s trajectory has further momentum. His $1,500 projection reflects a 15x multiple applied to his forward twelve-month earnings estimate — a valuation he considers justified given Micron’s strategic position within the AI infrastructure ecosystem. Currently, Micron commands just over 10 times forward earnings. Intel’s valuation exceeds 97 times, though Luria observes this could compress toward 40 times should Intel successfully address its manufacturing segment losses. Regardless, Luria argues the valuation chasm between these two companies lacks fundamental justification when examining competitive landscapes. Intel operates in a predominantly fabless environment where competitors can rapidly pivot production. Conversely, Micron, SK Hynix, and Samsung collectively dominate nearly the entire DRAM and HBM marketplace. “We are not aware of any competition coming,” Luria stated, emphasizing that any potential new entrant would require a minimum of two to three years simply to construct the requisite fabrication infrastructure. This represents a significant competitive barrier, and the market may be undervaluing this advantage at a 10x forward earnings multiple. Mizuho released its upgrade one day prior, elevating Micron’s price target to $1,150 from $800 while maintaining its Outperform designation. The firm anticipates fiscal 2027 revenue climbing 70% year-over-year with EPS advancing 85%, propelled by favorable DRAM and NAND market conditions. Mizuho’s fiscal 2028 EPS forecast exceeds Wall Street consensus by 41%, underpinned by constrained supply and sustained pricing leverage. HBM technology forms a central component of this thesis. Mizuho projects HBM will constitute 23% of Micron’s fiscal 2028 revenue stream, with HBM pricing potentially surging 70% to 100% year-over-year during calendar 2027. Agentic AI — AI systems capable of autonomous operation — is anticipated to generate incremental DRAM requirements as deployment accelerates through 2027. Mizuho additionally noted that non-AI enterprise customers continue experiencing 30% to 50% supply deficits, creating an additional demand catalyst independent of hyperscale infrastructure spending. The stock’s PEG ratio stands at merely 0.1, while revenue had already surged 85.55% over the trailing twelve months preceding these analyst calls. Micron was trading close to its 52-week peak of $916.80 when Mizuho published its analysis, with InvestingPro indicating the stock currently trades above its calculated Fair Value threshold.