Micron Technology shares have seen a significant increase over the past year, nearly doubling in value as the demand for high-bandwidth memory in AI servers continues to grow. As a result, the stock’s current valuation is based on fiscal 2026 earnings estimates that are considered reasonable. Analysts at Baird believe there is potential for further upside, with a price target of $150, representing a 25% increase from the current share price.
The growth in AI technology has been a catalyst for Micron’s continued success, as data centers invest in increasing data capacity, network speed, and processing power. This has led to significant revenue growth for the company. In the fiscal 2024 second quarter, Micron’s revenue increased by 57% year over year. The limited availability of memory chips has also contributed to higher selling prices, particularly for DRAM, which makes up a significant portion of Micron’s revenue.
Micron management is optimistic about the company’s future, expecting revenue to reach $6.6 billion in the current quarter, up from $3.8 billion in the same period last year. Profitability is also expected to improve substantially, contributing to the positive outlook for the stock. Analysts anticipate earnings to reach $10.05 per share by fiscal 2026, supporting Baird’s $150 price target.
Overall, Micron stock looks promising with its potential for continued growth in the coming months and its current valuation being inline with historical averages making $150 price target a reasonable projection for the next 12 to 18 months
