Is Micron stock too expensive right now? At around $698 a share, with a 52-week range stretching from $90.93 to a high of $818.67, that question comes up constantly. The stock already rallied over 600% from its lows, which sounds excessive on its face. The MU stock price target math, though, tells a pretty different story: a forward price-to-earnings ratio of roughly 7x to 8x and a PEG ratio near 0.26 put Micron well below the broader S&P 500 average on a valuation basis right now. Whether Micron stock will go up further from here is a question Wall Street genuinely splits on, and the answer comes down almost entirely to how long the AI memory shortage holds.

The bull case for Micron stock not being too expensive gained attention lately. Take the company’s trailing P/E of around 39x, multiply it by the consensus fiscal 2026 EPS forecast of $32.45, and you land at a target of $1,275. Even the more conservative EPS estimate of $30.28 on the low end still produces a price of roughly $1,190, a 183% gain from where MU was trading at the time. The company’s Q1 fiscal 2026 results, reported in late November 2025, supported that kind of optimism: revenue of $13.6 billion, up 57% year over year, DRAM accounting for 79% of the total, and a gross margin of 45.3%.

The memory shortage underpinning all of this is also real. Intel CEO Lip-Bu Tan said the crunch will not ease until 2028. And in its Q1 fiscal 2026 earnings call, Micron’s own management made the scale of the demand problem very clear:

“Despite significant efforts, we are disappointed to be unable to meet demand from our customers, across all market segments. We have completed agreements on price and volume for our entire calendar 2026 HBM supply, including Micron’s industry-leading HBM4.”

Selling out an entire calendar year of HBM supply is a pretty remarkable data point on its own, and it also explains why analysts keep lifting their MU stock price targets. At the time of writing, the three most recent upgrades came from Citigroup ($840), Melius Research ($1,100), and Mizuho ($800), all on May 19, putting the average of those three alone at over $913.

Also Read:Micron Stock Will Surge to $2,000 Within a Year, Analysts Say

Mizuho’sVijay Rakesh, one of the more consistently bullish voices on Micron stock, raised his MU stock price target to $800 from $740 and kept an Outperform rating. He argues pricing strength in NAND and DRAM markets will last well beyond this year.

Rakesh wrote in his May 19 research note:

“We continue to note pricing tailwinds in 2026 from AI server demand as we see NAND pricing up 413% y/y and DRAM up 355% y/y. We note potential for further pricing tailwinds for Micron as a potential Samsung strike looms, while Micron also is expected to report May-quarter earnings on June 24.”

In an earlier note, Rakesh also pointed to “agentic AI driving memory demand higher,” and projected HBM revenue growing at a 40% compound annual rate to surpass $100 billion by 2028. His fiscal 2027 estimates call for revenue growth of 66% and EPS growth of 80%, year over year.

Source: Watcher Guru