Prediction: Micron Will Trade at This Price At The End of The Year

"Our 24/7 Wall St. price target for Micron is $435.15 over the next 12 months, implying -45.29% downside from the current $795.33 quote. The recommendation is sell with high confidence at 90%. Even with forward EPS of $14.60, the stock prices in an implied P/E of 71, an extreme multiple for a historically cyclical memory business."

"Real upside could come from extended HBM tightness through calendar 2026 and beyond, or from multiyear customer LTAs management has been signing with hyperscalers. Consider our target one datapoint among many."

"Micron has appreciated 178.79% year to date and 89.1% in just the past month. Q1 FY26, reported December 17, 2025, delivered revenue of $13.64 billion, up 56.6% year over year, with non-GAAP EPS of $4.78 beating consensus by 21.33%. GAAP gross margin expanded to 56% from 38.4% a year earlier. Q2 FY26 guidance, due June 29, 2026, calls for record revenue of $18.70 billion."

"CEO Sanjay Mehrotra told investors "we are only able to meet about 50% to two-thirds of our demand from several key customers", and that "the gap between the demand and supply for all of DRAM, including HBM, is really the highest that we have ever seen." The company has now "completed agreements on price and volume for our entire calendar 2026 HBM supply." Management raised its HBM TAM forecast to $100 billion by 2028, pulled in two years versus prior guidance."

Memory has shifted from a commodity to a strategic asset, benefiting Micron. Shares have risen sharply over the past year, driven by an AI memory supercycle, but the outlook suggests the easiest gains may be finished. A 12-month price target of $435.15 implies substantial downside from the current level, with a high-confidence sell recommendation. The valuation is described as extreme for a historically cyclical memory business, even with forward earnings expectations. Potential upside depends on continued HBM supply tightness through 2026 and beyond, and on multiyear customer agreements with hyperscalers. Recent results show strong revenue growth, margin expansion, and record guidance.

Read at 24/7 Wall St.