How Micron Could 3x From Here If AI Memory Demand Keeps Exploding

58 minutes ago 1

Omor Ibne Ehsan

Mon, June 29, 2026 astatine 10:49 AM CDT 5 min read

Quick Read

Micron (MU) delivered $41 cardinal successful Q3 revenue, up 346% year-over-year, with gross margins hitting 84.6% arsenic AI request structurally transformed the representation industry.
Goldman Sachs holds a $400 target, informing caller HBM capableness from Micron, SK Hynix, and Samsung volition compress today's near-85% gross margins by 2028.
Tripling to $3,000 requires EPS to prolong supra $31, valuation multiples to hold, and take-or-pay contracts to permanently de-cyclicalize Micron's business.
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Three times the existent terms would enactment Micron Technology (NASDAQ:MU) determination astir $3,000 a share. That is simply a fig that sits supra each published Wall Street people connected the stock. The lone mode determination runs done a representation supercycle that lasts longer and runs hotter than adjacent bulls presently model. Let's instrumentality a look astatine however Micron could get there, adjacent though Goldman Sachs has a crisp antagonistic to the full exercise.

A golden, metallic bull figurine with salient horns and a muscular physique stands connected a dark, reflective surface. In the background, a blurred smartphone oregon tablet surface displays a colorful banal marketplace candlestick illustration with salient reddish and greenish lines indicating terms fluctuations. The bull faces somewhat upwards and to the right, appearing to regard astatine the chart. The wide lighting is dim, with immoderate reflections connected the acheronian aboveground and brushed bokeh lights successful the acold background.

The June 4th that re-rated DRAM and HBM

Micron's fiscal 3rd quarter, reported June 24, forced analysts to redraw their spreadsheets. Revenue came successful astatine $41.456 billion, up 345.72% twelvemonth implicit twelvemonth from $9.30 billion. Non-GAAP EPS landed astatine $25.11 against a $20.2843 consensus. GAAP gross borderline printed 84.6%, against 37.7% a twelvemonth earlier. Operating currency travel of $25.388 cardinal successful a azygous 4th argues for structural alteration beyond a mean cyclical bounce.

CEO Sanjay Mehrotra was nonstop astir why. "The representation manufacture has been structurally transformed by the proliferation of AI." Management has signed 16 strategical lawsuit agreements with take-or-pay presumption that correspond astir $100 cardinal successful remaining show obligations and projected $22 cardinal successful lawsuit currency deposits and related commitments.

The strategical proviso statement with Anthropic disclosed June 22, 2026 is the header example. Mehrotra besides said HBM tin capable lone 50% to two-thirds of request successful 2026.

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The bull thesis writes itself from there. Micron is 1 of lone 3 HBM suppliers, alongside SK Hynix and Samsung. It crossed $1 trillion successful marketplace headdress successful May. Year to day the banal is up 296.92%. Q4 guidance of $50 cardinal successful gross and $31.00 successful non-GAAP EPS implies the trajectory is accelerating.