Why Micron Stock Just Popped

Core Viewpoint - Micron Technology's stock has seen a significant increase following positive analyst comments and raised price targets from multiple firms, indicating strong demand and pricing resilience in the semiconductor market, particularly for DRAM and NAND flash memory [1][3][4]. Group 1: Analyst Insights - Wolfe Research raised its price target for Micron to $180, citing resilient pricing for DRAM and growing demand for NAND flash memory due to limited hard disk drive supply [3]. - Susquehanna also expressed optimism, projecting HBM prices to remain stable through 2026 and setting a price target of $200 [4]. - Wedbush agreed with Susquehanna's target and noted that Micron's valuation could be conservative, suggesting potential for better gross margins and profits compared to previous cycles [4][5]. Group 2: Earnings Forecast - Analysts predict that Micron's earnings this year will be ten times higher than in 2024, with expectations of doubling by 2027 to $13.70 per share [6]. - Despite the positive outlook, there are concerns that at the current price of approximately $168, Micron's stock may already be overpriced given its 79% increase over the past year [6]. Group 3: Market Position - The semiconductor industry, particularly in the segments of DRAM, NAND, and HBM, is expected to experience strong demand in the coming years, which is favorable for Micron [7]. - However, Micron Technology was not included in a list of top stock recommendations by The Motley Fool, suggesting that there may be other investment opportunities perceived as more promising [8].