Key Takeaways
- D.A. Davidson boosted Micron’s price target to $1,500 from $1,000, highlighting HBM adoption and strategic supply agreements
- At just over 10x forward P/E, Micron’s valuation lags Intel’s 97x multiple — analysts believe this disparity is unjustified
- Mizuho upgraded its target to $1,150 from $800 with an Outperform rating; shares have skyrocketed 832% year-over-year
- Fiscal 2027 projections show 70% revenue expansion and 85% EPS growth, powered by DRAM, NAND, and HBM momentum
- HBM pricing could jump 70%–100% YoY in calendar 2027; traditional customers face 30%–50% supply shortages
Shares of Micron Technology (MU) were hovering between $910 and $928 this week, reflecting an astronomical 832% climb over the past twelve months, as consecutive analyst upgrades sparked renewed debate about whether the memory chip maker represents a superior AI play versus Intel (INTC).
On Thursday, D.A. Davidson’s Gil Luria elevated his price objective for Micron to $1,500 from $1,000. His rationale centers on fundamental shifts within the memory semiconductor sector that he believes investors have yet to fully appreciate.
Micron stock slipped approximately 1.9% in premarket activity to $910.79 when the report emerged, yet Luria’s long-term outlook remains decidedly optimistic.
While both Micron and Intel have more than tripled in value this year thanks to AI server infrastructure buildouts, Luria contends Micron has significantly more upside potential ahead.
His $1,500 projection applies a 15x multiple to his next-twelve-month earnings forecast — a valuation he considers justified given Micron’s positioning within the artificial intelligence hardware ecosystem.
The Valuation Disconnect Between Micron and Intel
Currently, Micron commands slightly above 10 times forward earnings. Intel, meanwhile, trades at over 97 times, though Luria observes this figure could compress toward 40x if the company successfully addresses its foundry segment losses.
Regardless, Luria argues the valuation chasm between these two companies lacks fundamental justification when examining competitive landscapes.
Intel operates in a predominantly fabless environment where competitors can pivot manufacturing capacity rapidly. Conversely, Micron, SK Hynix, and Samsung collectively control nearly the entire DRAM and HBM market.
“We are not aware of any competition coming,” Luria stated, emphasizing that any potential new entrant would require a minimum of two to three years simply to construct the required fabrication infrastructure.
This represents a significant competitive advantage, which may remain underappreciated at a 10x forward earnings multiple.
Mizuho’s Optimistic Fiscal 2027 Outlook
One day prior, Mizuho released its own positive revision, lifting Micron’s price target to $1,150 from $800 while maintaining its Outperform recommendation.
The firm projects fiscal 2027 revenue growth of 70% year-over-year alongside 85% EPS expansion, supported by favorable DRAM and NAND market dynamics.
Mizuho’s fiscal 2028 EPS forecast exceeds Wall Street consensus by 41%, underpinned by constrained supply conditions and sustained pricing strength.
HBM represents a critical component of this thesis. Mizuho anticipates HBM will contribute 23% of Micron’s fiscal 2028 revenue, with pricing potentially increasing 70% to 100% year-over-year during calendar 2027.
Agentic AI — AI systems capable of autonomous operation — is projected to generate incremental DRAM requirements as deployment accelerates through 2027.
Mizuho also highlighted that customers outside the AI sector continue experiencing 30% to 50% supply deficits, creating an additional demand catalyst independent of hyperscale data center investments.
The stock’s PEG ratio stands at merely 0.1, while revenue had already expanded 85.55% over the trailing twelve months prior to these analyst updates.
Micron was trading near its 52-week peak of $916.80 when Mizuho published its analysis, with InvestingPro indicating the shares currently appear overvalued compared to its Fair Value calculation.
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