Wall Street Just Put a Monster Target on Micron. Is the Stock Still Too Cheap?

Susquehanna analyst Mehdi Hosseini recently slapped a $1,750 price target on Micron (NASDAQ:MU | MU Price Prediction). The stock is trading at below $900, which means the call implies the shares would have to roughly double from here. The number is conspicuous enough that we should treat it as a high-end outlier rather than a Street base case. The 3-month analyst consensus target sits at $939, which is already below where the stock trades. So before anyone gets excited, the honest framing is this. A loud bull is pricing in another leg up. The average sell-side analyst thinks Micron has already overshot. That gap is the entire story.

The question worth chewing on is whether Micron is genuinely cheap at $891, or whether it has run ahead of even the optimists.

The bull case behind a $1,750 call

Start with the earnings. Fiscal Q2 2026 revenue came in at $23.86 billion, beating consensus of $19.51 billion by 22.28%, and non-GAAP EPS of $12.20 blew past the $8.73 estimate. GAAP gross margin expanded to 74.4% from 36.8% a year earlier. Operating income went from $1.77 billion to $16.14 billion. Free cash flow grew 837.36% year over year to $6.90 billion.

Then there is the guide. Micron is telling you fiscal Q3 revenue will land at $33.50 billion, with non-GAAP EPS of $19.15 and gross margin around 81%. Margins like that used to be reserved for software companies, not commodity memory.

CEO Sanjay Mehrotra framed the moment plainly. “In the AI era, memory has become a strategic asset for our customers, and we are investing in our global manufacturing footprint to support their growing demand.” The board backed that view by approving a 30% dividend increase to $0.15 per share, alongside $650 million in buybacks during the first half of the fiscal year.

NVIDIA (NASDAQ:NVDA) recently certified Micron as an HBM4 supplier for the Vera Rubin platform, which matters because high-bandwidth memory is the part of the bill of materials AI customers actually fight over. On a forward earnings basis, the stock trades at 9x. If you believe Micron has structurally escaped its old commodity cycle, that multiple is the bull thesis in one digit.

The bear case staring back

The stock is up 668% over the past year and 183% year to date. Memory is still a cyclical business. When supply catches up to demand, the same operating leverage that drove margins to 74.4% works in reverse.

Most of those gains can be given back in a matter of a few weeks if there’s any indication that these earnings are temporary. The moment Wall Street catches wind that AI hasn’t changed memory’s cyclical nature, this is a stock that will plunge. That said, there’s no such indication of that yet.

Is Micron actually cheap?

Both sides have a real argument, which is what makes this interesting. At 8x forward earnings, Micron looks absurdly cheap if you accept the guide and assume HBM demand stays tight through the Vera Rubin cycle. At 42x trailing earnings, with the stock up nearly eightfold in a year and insiders trimming, it looks like a momentum trade that has lapped its own fundamentals.

For long-term holders, the figure that matters is the fiscal Q3 print, where Micron has guided to $33.50 billion in revenue and $19.15 in EPS. Hit those numbers cleanly and the bull camp gets its proof. Miss, or guide softly into fiscal 2027, and a stock trading at these levels has nowhere comfortable to hide. The $1,750 call is a bet that this cycle is different. The rest of Wall Street, for now, is not quite ready to make it.