"Net profit exploded by 1300%"... Can Micron (MU) surge further to $1,500?

▲ Micron (MU), Artificial Intelligence (AI), Memory Chip/AI Generated Image

A forecast has emerged that Micron Technology (MU), which has surged 740% in one year, could break through cautious sentiment and soar to $1,500. The target price presented by some analysts is 45% higher than the stock price at the time of writing, with the explosion in memory demand from artificial intelligence (AI) data centers emerging as a key rationale for further upside.

According to U.S. financial media Yahoo Finance on July 5 (local time), Chris Neiger, a technology and automotive analyst at Motley Fool, analyzed that the bullish outlook is not detached from reality, citing that three analysts recently raised Micron's target price to $1,500. Unlike some beneficiaries with weak connections to AI technology and business foundations, Micron's memory processor sales are directly impacted by the AI supercycle, he explained.

The scale of AI infrastructure investment also supports the bullish case for Micron. Some major technology companies are expected to execute $750 billion in capital expenditure this year, with most of it allocated to the AI sector. Alphabet (GOOG·GOOGL) plans to invest up to $190 billion this year and stated, "We expect expenditures to significantly increase next year compared to 2026." Neiger pointed out that massive AI investments are boosting Micron's memory chip sales and simultaneously leading to price increases due to expanded demand.

Earnings fully demonstrated the power of memory demand. Micron's Q3 2026 revenue increased by 345% to $41.5 billion, and adjusted earnings per share surged by over 1,300% to $24.67. Management stated that the 2026 revenue run rate for the data center business, which includes memory chip sales, is $100 billion. The analysis suggests that as high demand pushes up both memory processor prices and profits, the logic for stock price appreciation will gain strength as AI infrastructure investment continues.

Volatility risks remain. Some investors have questioned the scale of AI investments by tech companies, and there was disappointment selling when Micron management recently did not raise its annual AI chip outlook. While Neiger noted that short-term AI investment skepticism could shake the stock price, he assessed that the $1,500 forecast is not unrealistic, citing Micron's high profitability, revenue growth, and a unique memory demand environment that could persist for several years.

[Article Key Summary]

-Micron has risen 740% in the past 12 months, but three analysts have raised its target price to $1,500.

-With major tech companies' capital expenditure reaching $750 billion this year, primarily in the AI sector, memory demand and prices are rising simultaneously.

-Micron's Q3 2026 revenue increased by 345% to $41.5 billion, and adjusted earnings per share surged by over 1,300% to $24.67.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*