Micron’s Highest Price Target on Wall Street Is Now $2,100
DA Davidson just issued the most bullish price target on Wall Street for Micron, and the math behind it hinges on something that has never lasted this long in any previous memory cycle.
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Gil Luria of DA Davidson raised his price target to $2,100 from $2,000, the highest on the Street, and maintained a Buy rating after Micron Technology’s (NASDAQ:MU | MU Price Prediction) September 30, 2026 earnings report. Rosenblatt also raised its target to $1,900 from $1,500.
The stock rose 3.03% on October 1 and closed at $1,097.39. From that close, the new target implies about 91% upside.
The shares have gained 503.44% over the past year and 284.73% in 2026, according to DA Davidson. For the price to nearly double again, memory prices would have to stay tight longer than in any earlier cycle.
Which Half of the $2,100 Target Does the Work, according to DA Davidson
Luria applies 13 times to calendar 2027 earnings. For a semiconductor stock, that multiple is low. The assumption is that pricing holds near peak levels well into 2027.
Luria points to 26 long-term supply agreements and says memory markets “could be even tighter in 2028 than they are today.” These agreements turn commodity sales into contracted volume on a take-or-pay basis, supporting roughly $150 billion in remaining performance obligations.
Results That Explain the Optimism
Fiscal fourth-quarter revenue reached $54.23 billion, up 379%, and adjusted EPS was $33.42. Guidance calls for $61.5 billion in revenue and $38.15 in EPS next quarter.
Memory factories cost roughly the same to run regardless of selling price, so most extra revenue becomes profit. Gross margin reached 87%, and the same effect works just as hard when prices fall.
Cash Returns Make the Strongest Bull Argument
Cantor Fitzgerald’s C.J. Muse projects over $333 billion in free cash flow over the next eight quarters. Vivek Arya at Bank of America (NYSE:BAC) expects buybacks of $60 billion to $100 billion annually by fiscal 2028 and 2029, years Luria expects to be tighter.
Cash returned to shareholders does not depend on where pricing goes after payout. Micron already holds $68.3 billion in net cash and plans to step up capital returns starting December 9, 2026, according to DA Davidson.
Why $2,100 Is an Outlier, according to DA Davidson
Goldman Sachs (NYSE:GS) rates the stock Hold at $1,100. Morningstar (NASDAQ:MORN) puts fair value at $700, and consensus targets range from about $1,378 to about $1,520.
Skeptics worry about new supply, which has historically ended memory upcycles. Micron’s Idaho fab targets first wafers in mid-calendar 2027, and rivals are spending heavily, according to DA Davidson. The stock gained only 1.56% over the week that included the earnings report.
What Would Break the Bull Case for MU Stock
The cash returns make a stronger case than the $2,100 target, according to DA Davidson. The contracts and buybacks give Micron a buffer that earlier memory booms lacked, though consensus targets are a more realistic guide to value.
This view would prove wrong if a fiscal first quarter falls short of the $61.5 billion guide, no new buyback authorization is announced by December 9, 2026, or the first quarter in which guidance stops rising, according to DA Davidson. If any of those happens, the extreme target would likely lose its relevance to the stock’s valuation.
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Omor Ibne Ehsan is a writer at 24/7 Wall St. He is a self-taught investor with a focus on growth, cyclical, and dividend equities that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as penny stocks.
