Wall Street Just Put a Monster Target on Micron. Is the Stock Still Too Cheap?

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Micron Technology (NASDAQ:MU) stock is ripping higher again on Thursday morning, with shares up 7% to $1,120 after a wave of major Wall Street target hikes landed before the open. The move extends one of the most extraordinary share-price runs in large-cap tech.

For context, Micron stock is now up 266% year to date (YTD) in 2026 and 767% over the past year. New 52-week highs are being printed in real time, prompting investors to ask whether MU stock is still too cheap, or whether the targets are simply catching up to the price.

The headline trigger is a coordinated round of upgrades from four major firms, all anchored to surging AI-driven memory pricing.

Monster Targets Stack Up

Stifel is the loudest voice in the room. The firm raised its price target on Micron stock to $1,500, up from $550, maintaining a Buy rating, citing another significant upward shift in AI-driven memory demand. Stifel now models about twice the DRAM average selling price per gigabit, excluding HBM, than Micron’s initial outlook implied.

The firm pointed to current contract pricing above $2.5 per gigabit for server DRAM and above $1.5 per gigabit for consumer PC and mobile. Stifel’s fiscal Q4 FY2026 estimate already reflects 20% quarter-over-quarter revenue growth for Micron, which it called conservative if July to August contract pricing keeps moving up.

Wedbush analyst Matt Bryson raised his MU stock price target to $1,300, up from $550, maintaining an Outperform rating. Wedbush noted that revenue and EPS estimates for Micron’s fiscal Q3 2026 and out quarters had increased “substantially.” Deutsche Bank and TD Cowen have also set $1,500 price targets on Micron stock, with TD Cowen projecting $150 in earnings per share for calendar year 2027.

Is the Stock Still Too Cheap?

Here’s the part that matters for value-focused investors. Every one of those new targets, from $1,300 to $1,500, sits above Micron’s current price near $1,120. By the analysts’ own math, there’s still meaningful upside baked into these calls.

The bull case is straightforward. Micron’s fiscal Q2 FY2026 results showed revenue of $23.86 billion and non-GAAP EPS of $12.20, with management guiding fiscal Q3 revenue to a $33.5 billion midpoint and gross margin near 81%. CEO Sanjay Mehrotra stated, “In the AI era, memory has become a strategic asset for our customers,” and the board approved a 30% dividend increase.

The skeptical case is equally real. Memory is historically a boom-bust industry, and bit-shipment growth is expected to decelerate in CY2027. Stifel itself cautioned that CY2027 DRAM bit shipments may slow from low-to-mid 20% growth in CY2026, leaving room for debate on how much optimism is already baked into share prices.

Peers, Sentiment, and the Next Catalyst

The valuation tension is visible in the multiples. Micron’s trailing P/E ratio sits at 48x, while forward P/E ratio is just 9x, reflecting the explosive earnings ramp Wall Street is modeling. Polymarket traders are pricing in a 97% probability of another earnings beat next week.

Retail sentiment matches the move. Reddit data shows a “very_bullish” spike around June 11, with one WallStreetBets post titled “Looks like memory’s back on the menu, boys!” drawing heavy engagement.

What to Watch Now

The next real test arrives quickly. Micron is scheduled to report its fiscal Q3 2026 earnings on Wednesday, June 24, after market close, and that report can either validate the $1,500 calls or give skeptics their cyclicality argument back. Investors can watch for whether contract pricing commentary on the earnings call confirms the more aggressive ASP (Average Selling Price per gigabit for DRAM) math underpinning these targets.

Beyond the headline print, the quality of the beat will matter as much as the magnitude. Gross margin trajectory, HBM mix commentary, and any update on fiscal Q4 guidance will tell investors whether the AI memory cycle still has room to run or whether expectations have finally caught up to fundamentals.

Longer term, watch for capacity commentary from Samsung and SK Hynix, since supply discipline across the industry has been a key pillar of the bull thesis. Any sign of accelerated capex from competitors would put pressure on the cyclicality debate that skeptics keep raising, while continued tightness would reinforce the case for these monster Micron stock price targets.

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