Key Highlights
- D.A. Davidson boosted Micron’s price objective to $1,500 from $1,000, highlighting HBM expansion and strategic supply agreements
- Micron’s valuation sits around 10x forward P/E versus Intel’s 97x — Wall Street questions whether this discount is warranted
- Mizuho increased its price objective to $1,150 from $800 with an Outperform stance; shares have climbed 832% year-over-year
- Mizuho projects 70% revenue expansion and 85% EPS growth for fiscal 2027, powered by DRAM, NAND, and HBM momentum
- HBM pricing may jump 70%–100% annually in calendar 2027; traditional customers face 30%–50% supply shortfalls
Micron Technology (MU) stock hovered between $910 and $928 this week, marking an extraordinary 832% climb over the trailing twelve months, as back-to-back analyst upgrades sparked renewed debate about its position versus Intel (INTC) in the AI semiconductor race.
D.A. Davidson’s Gil Luria elevated his valuation target on Micron to $1,500 from $1,000. His Thursday note emphasized fundamental shifts in the memory semiconductor landscape that he believes remain underappreciated by the broader investment community.
Micron stock dipped roughly 1.9% during premarket hours to $910.79 when the report was issued, yet Luria’s outlook remains decidedly optimistic for the extended horizon.
Both Micron and Intel have delivered triple-digit percentage gains this year, propelled by accelerating AI server deployments. However, Luria maintains that Micron possesses additional upside potential.
His $1,500 projection rests on a 15x multiple applied to his forward twelve-month earnings forecast — a valuation he considers justified given Micron’s strategic positioning within the artificial intelligence infrastructure ecosystem.
Comparing Valuations: Micron Versus Intel
Currently, Micron commands slightly above 10 times forward earnings. Intel, meanwhile, trades north of 97 times, though Luria observes this figure could compress toward 40 times should Intel successfully address its foundry segment losses.
Regardless, Luria contends the valuation disparity appears unjustified when examining competitive landscape realities.
Intel operates in an increasingly fabless environment where competitors can pivot manufacturing partnerships rapidly. Conversely, Micron, SK Hynix, and Samsung collectively dominate virtually the entire DRAM and HBM manufacturing capacity globally.
“We are not aware of any competition coming,” Luria stated, noting that potential new entrants would require a minimum two-to-three-year timeline merely to construct necessary fabrication infrastructure.
This represents a significant competitive barrier, and current market pricing at 10x forward multiples may not adequately reflect this advantage.
Mizuho Projects Strong Fiscal 2027 Performance
Mizuho Securities issued its upgrade one day prior, lifting Micron’s target price to $1,150 from $800 while maintaining its Outperform designation.
The firm anticipates fiscal 2027 revenue climbing 70% annually with EPS advancing 85%, supported by favorable conditions across both DRAM and NAND segments.
Mizuho’s fiscal 2028 earnings projection exceeds Street consensus by 41%, predicated on sustained supply constraints and robust pricing dynamics.
HBM represents a cornerstone of this thesis. Mizuho anticipates HBM will constitute 23% of Micron’s fiscal 2028 revenue base, with pricing potentially ascending 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 adoption accelerates through 2027.
Mizuho further noted that traditional non-AI enterprise customers continue experiencing 30% to 50% supply deficits, creating supplementary demand channels independent of hyperscaler capital expenditure cycles.
The stock’s PEG ratio registers at merely 0.1, with trailing twelve-month revenue already demonstrating 85.55% growth prior to these analyst revisions.
Micron was approaching its 52-week peak of $916.80 when Mizuho published its assessment, though InvestingPro data suggested the stock trades above its calculated Fair Value threshold.
