Micron Hits $1,200 and Takes a Breather, Can it Really Break $2,000 in the Second Half?

▲ Micron (MU), Nvidia (NVDA)/AI generated image ©

Micron Technology (MU), which recently surpassed the $1,200 mark and is currently undergoing a short-term correction, is drawing global investors' attention as to whether it can continue its relentless upward trend in the second half of the year, driven by the explosion in demand for artificial intelligence (AI) memory. Major financial institutions on Wall Street are still predicting a strong rally, setting Micron's target price at up to $2,000, suggesting that the continued shortage of supply will be the rudder for the stock price direction.

According to cryptocurrency specialized media Watcher.Guru on July 7 (local time), Micron's (MU) stock price started at around $315 at the beginning of this year and drew a steep upward trajectory, breaking $1,200 immediately after the release of its Q3 FY2026 earnings report at the end of June. Although it has fallen back to around $975 this week, its past resilience, having overcome a crisis in March when it plummeted by over 30% intraday and then sequentially broke $500 in April, $700 in May, and $1,000 in early June, keeps market stock price indicators positive. Experts diagnose that such rapid volatility, rare for a semiconductor company, is the result of perfectly riding the AI memory boom.

Wall Street's reaction is also hotter than ever. Susquehanna International Group and Barclays set the highest target price of $2,000, while HSBC set $1,700 and Needham $1,650. TD Cowen and KeyBanc followed with $1,600, Deutsche Bank, Bank of America, and JPMorgan ranged between $1,540 and $1,550, and Cantor Fitzgerald and Rosenblatt also suggested $1,500, providing strong downside support. Most experts cite the fact that Micron's forward price-to-earnings (P/E) ratio remains below 10x as strong evidence that the stock is significantly cheaper compared to other AI-related semiconductor stocks.

Investment banks are expressing strong confidence in Micron's long-term growth potential. Susquehanna predicts that Micron will maintain strong pricing power as the high-bandwidth memory (HBM) supply shortage is expected to persist until 2030. Barclays also highly praised the 5-year long-term customer contracts and continuously increasing free cash flow. Furthermore, KeyBanc observed that HBM production for 2026 is already fully sold out and that earnings per share (EPS) for 2027 could soar to between $105 and $149, while Bank of America emphasized that AI infrastructure spending is still in its early stages, making a stock price at a P/E of 9x an attractive buying opportunity.

The management's voice on the ground also supports this optimism. Sanjay Mehrotra, Micron's CEO, acknowledged the severe supply shortage during the earnings conference call on June 24, stating that it is currently difficult to predict when memory supply will catch up with increasing demand. He affirmed that because the AI trend is a very long-term one, even with gradual supply improvements in 2027 and 2028 due to productivity degradation from HBM conversion and increased wafer demand, the tight supply-demand structure and robust demand trajectory will continue.

The media explained that Micron has already secured approximately $22 billion in upfront cash through 16 strategic customer contracts, and these contracts are irrevocable, significantly removing future earnings uncertainty. Combining the current P/E ratio below 10x, management's confidence, and the already secured large-scale contracts, the conclusion is that, barring an unexpected variable like a macroeconomic slowdown in AI spending, Micron's stock surge is highly likely to continue into the second half of 2026.

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