Micron (MU) Stock: Wall Street’s Most Optimistic Analyst Just Laid Out His Argument

Summary

• DA Davidson has initiated coverage on Micron with a Buy rating and a record-high price target of $1,000, suggesting a potential 91% gain.
• The positive outlook is driven by AI, which is expected to foster a structurally unique and extended memory cycle.
• In March, Micron secured a five-year supply agreement, marking a first for the memory sector.
• TD Cowen increased its price objective to $660 from $550, maintaining its Buy recommendation.
• Micron’s share of the HBM market surged from roughly 5% in 2024 to about 21% by the second quarter of 2025, overtaking Samsung.

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(SeaPRwire) –   On Monday, Micron Technology was the subject of two optimistic analyst reports, including a Wall Street-high $1,000 price target from DA Davidson.

Micron Technology, Inc., MU

Analyst Gil Luria of DA Davidson began coverage with a Buy rating, suggesting that the impact of AI on the memory sector has not been fully recognized by investors. His $1,000 valuation represents a 91% increase over Micron’s recent close of $524.56.

This target is calculated using a 10x multiple of the company’s projected fiscal year 2030 earnings of $139 per share, discounted back three years at a rate of 10%.

Luria contends that while previous memory cycles were limited by demand caps and oversupply, AI is disrupting this historical trend.

“Every new compute rollout enables additional applications, generating new demand that didn’t exist prior to the infrastructure being established,” Luria noted.

He also highlighted the emergence of long-term strategic contracts as a sign of industry evolution. Micron’s five-year supply agreement announced in March was a pioneer in the sector, with competitors like Samsung and SK Hynix reportedly pursuing similar deals with major cloud providers.

The Importance of HBM

High-bandwidth memory (HBM) is a primary driver of Micron’s expansion. The firm’s market share in HBM rose from approximately 5% in 2024 to nearly 21% by Q2 2025, moving past Samsung to take the second-place spot among suppliers.

Luria further emphasized Micron’s technological lead—maintaining a four-generation advantage in DRAM and a three-generation lead in NAND—which provides a cost benefit that may be overlooked by the market.

“Investors are still viewing the current cycle through the perspective of past slumps, which likely underestimates the strength of the demand environment,” he stated.

TD Cowen Boosts Price Target

TD Cowen adjusted its price target for Micron to $660 from $550 while reiterating a Buy rating. The firm noted that long-term supply deals are being established with gross margin floors near 60% and ceilings reaching the high-80% range.

According to TD Cowen, the stock’s next major catalyst will be its long-term stability rather than immediate earnings growth, as AGI-related CPU demand could sustain the DRAM market over time.

The firm anticipates Micron’s earnings per share will exceed market expectations by roughly 20% in the May quarter—projecting $23 vs. the $19 consensus—and by 18% in the August quarter at $27 vs. $23.

For the 2027 calendar year, TD Cowen estimates EPS at $110, slightly higher than the $106 analyst consensus.

However, the firm cautioned about potential challenges in the latter half of the year, noting that shifts from high to lower gross margins have traditionally impacted the stock price.

Currently, Micron maintains a trailing twelve-month gross profit margin of 58.44% and a P/E ratio of 23.42.

Additionally, Melius Research recently started coverage with a Buy rating and a $700 target, indicating a 41% upside potential.

Micron shares were priced at $495 on Monday, representing a 5.6% decline during the trading session.