Micron Surges 831% on AI Memory Boom as 46 of 49 Analysts Still Rate It Buy

1 articles · Updated · The Motley Fool · Jun 20

Micron shares have climbed 831% over the past year, yet 46 of 49 analysts still rate the stock a buy even though the median 12-month target of $1,100 sits about 3% below current levels.
HBM demand from AI data centers is driving that optimism: major memory makers have effectively sold out 2026 capacity, and SK Hynix projects the HBM market will grow 30% annually through the end of the decade.
That tightness is spilling across the industry because HBM uses three to four times the production capacity of conventional memory, leaving shortages in PC, smartphone, gaming-console and automotive chips.
Micron's valuation still looks less stretched than its rally suggests, with a trailing P/E of 53 and a forward P/E of 10.5 as consensus forecasts fiscal 2026 earnings to jump 636% to $61.01 a share.
Longer term, sustained undersupply could keep lifting estimates: if earnings reach $120.24 in fiscal 2028 and continue growing, the stock could approach $4,864 in five years, according to the report's scenario.