Key Takeaways
- D.A. Davidson boosted Micron’s price target to $1,500 from $1,000, highlighting HBM adoption and strategic supply agreements
- Micron’s forward P/E ratio stands at roughly 10x, while Intel trades at 97x — a disparity analysts view as unjustified
- Mizuho upgraded its target to $1,150 from $800 with an Outperform rating; the stock has rallied 832% year-over-year
- Fiscal 2027 projections show 70% revenue expansion and 85% EPS growth, propelled by DRAM, NAND, and HBM markets
- HBM pricing may climb 70%–100% year-over-year in 2027; traditional customers face 30%–50% supply shortages
Micron Technology (MU) stock hovered between $910 and $928 this week, reflecting an extraordinary 832% gain over the past year, as consecutive analyst upgrades sparked debate over whether it represents a superior AI semiconductor investment compared to Intel (INTC).
Gil Luria from D.A. Davidson elevated his price objective for Micron to $1,500 from $1,000. Released on Thursday, his analysis emphasizes fundamental shifts within the memory chip sector that he believes remain underappreciated by the market.
Micron stock declined approximately 1.9% during premarket hours to $910.79 when the report was issued, though Luria’s long-term outlook remains decidedly optimistic.
Both Micron and Intel have experienced gains exceeding 200% this year, benefiting from AI server infrastructure buildout. However, Luria maintains that Micron possesses additional upside potential.
His $1,500 price objective derives from applying a 15x multiple to his projected twelve-month forward earnings — a valuation he considers justified given the company’s positioning within the artificial intelligence ecosystem.
Comparing Valuations: Micron Versus Intel
Currently, Micron commands just over 10 times forward earnings. Intel, meanwhile, trades above 97 times, though Luria observes that figure could contract to approximately 40 times should Intel successfully address its foundry operation losses.
Regardless, Luria contends the valuation discrepancy lacks fundamental justification when examining competitive landscapes.
Intel operates in a predominantly fabless ecosystem where competitors can rapidly reallocate manufacturing. Conversely, Micron, SK Hynix, and Samsung collectively dominate the DRAM and HBM markets.
“We are not aware of any competition coming,” Luria stated, noting that potential new entrants would require a minimum of two to three years simply to construct the requisite fabrication infrastructure.
This constitutes a significant competitive advantage, which may not be adequately reflected in a 10x forward earnings multiple.
Mizuho’s Optimistic Fiscal 2027 Outlook
Mizuho released its upgrade one day prior, elevating Micron’s price target to $1,150 from $800 while maintaining its Outperform designation.
The firm anticipates fiscal 2027 revenue climbing 70% year-over-year with EPS advancing 85%, powered by favorable DRAM and NAND market conditions.
Mizuho’s fiscal 2028 EPS projection exceeds the Street consensus by 41%, underpinned by constrained supply and sustained pricing strength.
HBM represents a critical component of this thesis. Mizuho projects HBM will constitute 23% of Micron’s fiscal 2028 revenue, with HBM pricing potentially surging 70% to 100% year-over-year throughout calendar 2027.
Agentic AI — AI systems capable of autonomous operation — is anticipated to generate incremental DRAM demand as deployment accelerates through 2027.
Mizuho additionally highlighted that conventional non-AI customers continue experiencing 30% to 50% supply deficits, presenting another demand catalyst independent of hyperscaler capital expenditure.
The stock’s PEG ratio registers at merely 0.1, while revenue had already expanded 85.55% over the trailing twelve months preceding these analyst calls.
Micron was trading near its 52-week peak of $916.80 at the time of Mizuho’s report, with InvestingPro indicating the stock currently trades above its calculated Fair Value estimate.
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