Micron Technology's Stock is Cheap with Huge Future Growth Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: NASDAQ.COM
- Surging Market Demand: Micron Technology's memory chip demand has reached an all-time high, with expectations of a 40% compound annual growth rate over the next few years, indicating a strong investment opportunity as the market is projected to reach $100 billion by 2028.
- Production Capacity Constraints: Despite Micron's production capacity being maxed out, new facilities in Idaho are not expected to come online until mid-2027, which means memory prices could continue to rise in 2026, leading to substantial profits for the company.
- Strong Financial Performance: Micron anticipates a record gross margin of 67% in Q2, which will significantly enhance its profitability and could drive the stock price up in the coming years, even though it currently trades at a mere 10 times forward earnings.
- Emerging Investment Opportunity: Although Micron Technology was not included in the analyst's top stock picks, its currently undervalued stock price combined with strong growth expectations positions it as a potential high-quality investment for 2026.
Analyst Views on MU
Wall Street analysts forecast MU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for MU is 336.12 USD with a low forecast of 235.00 USD and a high forecast of 500.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 336.630
Low
235.00
Averages
336.12
High
500.00
Current: 336.630
Low
235.00
Averages
336.12
High
500.00
About MU
Micron Technology, Inc. provides memory and storage solutions. The Company delivers a portfolio of high-performance dynamic random-access memory (DRAM), NAND, and NOR memory and storage products through its Micron and Crucial brands. The Company's products enable advancing in artificial intelligence (AI) and compute-intensive applications. Its segments include Cloud Memory Business Unit (CMBU), Core Data Center Business Unit (CDBU), Mobile and Client Business Unit (MCBU) and Automotive and Embedded Business Unit (AEBU). CMBU is focused on memory solutions for large hyperscale cloud customers, and high bandwidth memory (HBM) for all data center customers. CDBU is focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers. MCBU is focused on memory and storage solutions for mobile and client segments. AEBU is focused on memory and storage solutions for the automotive, industrial, and consumer segments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
