Prediction: This Could Be the Biggest AI Stock You’re Not Talking About

Memory stocks fell sharply this week, pulling the biggest memory names lower. The 24/7 Wall St. price target for Micron Technology (NASDAQ:MU | MU Price Prediction) is $913.86 over the next 12 months. With the stock at $688.09, that works out to 32.8% upside. The model’s output signal shows buy, with high confidence.

24/7 Wall St. Price Target Summary

Micron just finished a fiscal year with $133.19B in revenue and $75.52 in non-GAAP EPS. Even so, the stock trades at roughly 9x trailing earnings and 4x forward EPS estimates.

AI accelerator manufacturers get most of the AI attention, but Micron sells the memory that keeps those accelerators running, and its valuation reflects almost none of that role (we covered seven AI infrastructure suppliers beyond the chipmakers in a free report you can grab here).

A 30% Weekly Plunge Hides a Record Year

Micron is down 30.02% over the past week, 35.32% over the past month and 13.47% today alone. It is still up 141.28% year to date. Shares sit 45.2% below the 52-week high of $1,254.61.

Memory peer SanDisk (NASDAQ:SNDK) is also lower, as today’s selling has hit Micron, SanDisk and other AI names. The headlines include market share concerns and a pause on a Taiwan plant after a labor dispute.

The fundamentals tell a stronger story. In fiscal Q4, revenue reached $54.23B against a $50.97B estimate. Non-GAAP EPS came in at $33.42 versus the $31.35 consensus, Micron’s 8th consecutive beat. Gross margin hit 87%. For fiscal Q1, management guided to $61.5B ± $1.5B in revenue and $38.15 ± $1.00 in EPS.

Why Bulls See $1,342 Ahead

Management said more than 75% of fiscal 2027 shipments are already committed. Micron now has 26 Strategic Customer Agreements running through 2030. Executives called DRAM “the principal constraint versus logic or power to the data center.”

Micron also raised HBM pricing for calendar 2027 and is co-designing HBM4E with NVIDIA (NASDAQ:NVDA). The analyst consensus target is $1,561.91, backed by 9 Strong Buy ratings plus 36 Buy ratings. The bull case is $1,342.01, or 95.0% upside.

What Could Derail Micron’s AI Run

Memory has always been cyclical, and fiscal 2026 capex reached $30.71B. A large share of HBM sales goes to a small group of customers. The Taiwan plant pause and the market share questions add execution risk.

The bear case of $691.64 would leave the stock roughly flat for a year. On spending, most of the new construction budget goes to clean rooms for 2028, and management will add equipment as demand requires. Free cash flow of $62.31B covers that spending easily.

Micron Trades at a Steep Discount to NVIDIA and SanDisk

NVIDIA is Micron’s most important HBM partner. Its supply obligations of $279 billion are largely tied to memory procurement for Vera Rubin. At 40x earnings with revenue growth of 105.85%, NVIDIA commands a far higher multiple than Micron’s for slower growth. SanDisk is the closest memory peer. Its revenue grew 377.95%, yet it still trades at 13x.

Compared with these peers, our 24/7 Wall St. price target looks conservative.

Micron Trades at a Single-Digit Multiple After the Sell-Off

The 24/7 Wall St. price target is $913.86 with a buy rating and 90% confidence. The deciding factor for me is contracted demand at a single-digit multiple.

The thesis gets stronger if fiscal Q1 lands near guidance and more SCAs get signed. The thesis weakens if DRAM pricing rolls over or the Taiwan delay spreads to other projects.

The projections rest on Micron continuing to execute on HBM and its long-term customer agreements. A faster HBM4E ramp could drive results well above them, and a turn in the memory cycle could pull them well below.

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