Micron (MU) beat Q3 consensus by 18%, expanded gross margin to 85%, and guided Q4 revenue to a record $50B. Sandisk (SNDK) and Western Digital (WDC) trade at forward P/Es of 26 and 18, versus Micron's strikingly cheap 6, signaling deep value or cycle risk. Sixteen Strategic Customer Agreements lock in roughly $100B of minimum-priced revenue, giving Micron floor pricing CEO Mehrotra says exceeds any past cycle margin.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Micron Technology didn't make the cut. Grab the names FREE today. Micron Technology (NASDAQ:MU) closed the most recent session at $1,011.75, capping a 254.71% year-to-date run driven by an AI memory cycle that CEO Sanjay Mehrotra called a structural transformation of the industry.
Our 24/7 Wall St. price target for Micron is $964.63, implying -0.72% from here, and our recommendation is hold with high conviction. Our 24/7 Wall St. price target of $964.63 sits just below current levels. Real upside could come from 16 Strategic Customer Agreements locking in roughly $100 billion of minimum-priced revenue, or from HBM4 ramping twice as fast as HBM3E.
Consensus analyst targets sit far higher. Micron has climbed 738.41% over one year and 17.51% in the past week, but shares sit about 20% below the 52-week high of $1,254.81. Q3 FY26 results showed memory's AI leverage: revenue of $41.46 billion beat consensus by 17.60%, non-GAAP EPS of $25.11 beat by 23.79%, and GAAP gross margin expanded to 84.6% from 37.7% a year earlier.
Q4 guidance calls for record revenue of $50 billion and EPS of $31. Bulls have real ammunition. The average analyst price target sits at $1,501.98, backed by 9 strong buy and 31 buy ratings against zero sells.
The forward P/E on trailing consensus is just 6, a valuation that assumes memory profits collapse rather than compound. Mehrotra told analysts floor prices in SCAs deliver "a very robust gross margin for Micron, well above our peak quarterly margins in any past cycle." Data center revenue already exceeds $25 billion quarterly, Micron has shipped over $1 billion in HBM4 revenue, and management sees tight supply persisting beyond calendar 2027. Our bull-case scenario points to $1,334.11 over 12 months.
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