If Micron can hit the targets Wall Street is setting for it, the stock looks like a buy.
After taking a bit of a breather on Monday, Micron (MU +5.34%) stock resumed marching higher on Tuesday, gaining 6.6% through 1:25 p.m. ET after Mizuho analyst Vijay Rakesh raised his price target for Micron stock (again!), and this time from $390 to $480 per share.
If that name rings a bell, it should. A little over two weeks ago, Rakesh was the same Mizuho analyst who raised Micron’s price target to $390 after updating his outlook for semiconductor stocks in the new year.
Image source: Micron.
Why Mizuho loves Micron
Last time around, Rakesh simply cited “attractive valuations” as propitious for semi stocks. Today, he gave details on why Micron specifically is primed to run higher:
Because NAND prices are set to explode.
The price of computer NAND memory, says Rakesh in a note covered on TheFly.com, could soar 330% in 2026, followed by another 50% price spike in 2027. Add those gains up, and we’re potentially looking at NAND prices in 2027 that are 5 times higher than in 2025.
What’s driving the price spike? Simply this: NAND demand is forecast to rise 20% this year, but NAND production will remain flat. And as we all learned in Econ 101, when rising demand meets flat supply, prices rise.
Today’s Change
(5.34%) $20.79
Current Price
$409.88
Key Data Points
Market Cap
$438B
Day’s Range
$399.60 – $416.42
52wk Range
$61.54 – $416.42
Volume
1M
Avg Vol
29M
Gross Margin
45.53%
Dividend Yield
0.12%
Is Micron stock a buy?
What does this mean for Micron stock? In a nutshell, it means more sales. Higher profit margins. More profit. More growth.
This year alone, analysts forecast Micron stock to earn $31.73 per share. That would be more than four times the company’s 2025 profit, and implies a price-to-earnings ratio of just 13 on this $414 stock.
With earnings expected to grow 21% more in 2027, the time to buy is now.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.
