Micron Technology (MU) stock has gained more than 9% over the past five trading sessions. The rally comes as investors return to memory stocks following SanDisk’s (SNDK) upbeat long-term outlook at its 2026 Investor Day. In a new report, New Street Research analyst Pierre Ferragu also turned bullish on Micron, upgrading the stock to Buy from Hold with a $1,250 price target.
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Curious why XOVR invested in Kalshi? Explore the long-term strategy behind the investment.The latest move adds to signs that investors are growing more confident in the memory sector. Ferragu believes the current cycle could be different from past memory booms. He sees rising AI demand supporting stronger growth and better profits over time.
Ferragu is a five-star analyst on TipRanks, ranking #617 out of the 12,474 analysts tracked. He has a 67% success rate and an average return per rating of 23%.
Why Is the Analyst Bullish on Micron?
Ferragu believes Micron could benefit from a stronger memory market and less capacity growth. He expects the company’s finances to improve as demand rises and supply stays more controlled.
“Memory manufacturers have seen continued violent cyclicality,” Ferragu wrote. However, he noted that demand has kept growing over time. He also pointed to steady gains in memory profitability.
The analyst expects Micron to generate more than $150 billion in annual free cash flow at the peak of the next cycle. He also sees cash on the balance sheet rising above $600 billion by 2030.
Beyond the current cycle, Ferragu expects memory demand to grow 15% annually after 2030. That would be well above the roughly 10% average growth rate of the past 20 years. He sees AI driving much of that demand. Ferragu expects AI to account for about two-thirds of the memory market, which could also make HBM increasingly important to Micron.
Unlike traditional memory, HBM is less exposed to the usual swings in commodity DRAM. That is why Ferragu believes it deserves a higher valuation. “We think HBM deserves a multiple premium,” he wrote.
What Is the Price Target of MU Stock?
According to TipRanks, Micron stock carries a Strong Buy consensus rating based on 29 Buy and one Hold ratings assigned over the past three months. The average MU price target of $1,569.07 implies 61.48% upside from current levels.
