Prediction: Can Micron Keep Riding the AI Boom?

Quick Read

• MU surged 242% twelvemonth to day connected AI representation demand, but Michael Burry shorted astatine $1,051 calling it AI hype, sending shares down astir 20% successful a week.

• Reaching $1,500 by 2027 requires a 54% summation but lone a 23x guardant P/E connected $65 EPS, which is hardly supra the basal lawsuit aggregate of 22x.

• Wall Street's $1,486 statement and 89% bullish sentiment beryllium connected HBM4 pricing holding and hyperscaler AI capex not rolling implicit done 2027.

• Act now: the expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks — and Micron Technology didn't marque the cut. Grab the names FREE today.

Micron Technology (NASDAQ:MU) has go the representation communicative of the AI cycle. Cloud Memory gross deed $13.769 cardinal successful fiscal Q3 2026 alone, and non-GAAP gross borderline ballooned to 84.9%. CEO Sanjay Mehrotra called it plainly: "Micron's grounds fiscal Q3 fiscal results and adjacent stronger outlook for Q4 bespeak the strategical worth of representation successful the AI era."

Shares are up 241.97% twelvemonth to date, yet the banal conscionable pulled backmost sharply. So tin MU propulsion done to $1,500 successful 2027? Let's bash the math.

Why Micron Shares Just Got Hit Despite Blowout Numbers

The pullback is real. MU fell 19.61% successful the past week and 8.32% implicit the past month, adjacent arsenic YTD gains beryllium adjacent 242%.

Two headlines drove the reversal. Michael Burry disclosed a abbreviated astatine $1,051.87, arguing the rally reflects "AI hype and FOMO alternatively than fundamentals". Wall Street seasoned Jordi Visser flagged the sell-off arsenic a informing of a "mid-cycle slowdown" successful the AI trade.

Add a beta of 2.142 and an ongoing class-action suit alleging terms fixing, and volatility becomes the terms of admission. This is simply a banal that moves doubly arsenic hard arsenic the portion successful some directions.

Act now: the expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks — and Micron Technology didn't marque the cut. Grab the names FREE today.

Wall Street Sees Big Upside. Our Model Sees Fair Value.

Analysts are unusually aligned. The statement people is $1,486, with 9 Strong Buys, 31 Buys, 4 Holds, and conscionable 1 Strong Sell. Bullish sentiment sits astatine 89%. Our ain basal lawsuit lands astatine $979.86, fundamentally flat, with a bull lawsuit of $1,335.98 and carnivore lawsuit of $713.77. Confidence is 90%.

My take: analysts are person to close than our blimpish base. When net acceleration is this convulsive (345.72% gross growth), a P/E exemplary built connected trailing numbers understates the net trajectory.

The Path to $1,500 Per Share

Reaching $1,500 from today's terms of $975.56 would necessitate a summation of 53.8%. With guardant EPS of $64.97, a terms of $1,500 implies a guardant P/E of 23x. Our basal lawsuit of $979.86 already implies 22x, meaning the bold people requires astir 1.5x of further aggregate expansion.