Prediction: This Will Be Micron's Stock Price by Late 2027 (Hint: Wall Street Expects 106% Upside)

Micron Technology (NASDAQ:MU) has been a very volatile stock in 2026. Despite gaining 175% year to date, it has also declined 35% from the record high it reached in June.

Wall Street thinks Micron is deeply undervalued. The stock has a median target price of $1,575 per share among 55 analysts, implying 107% upside from the current share price of $760.

My view is more conservative. I think Micron will trade at $1,045 per share by late 2027, which implies 37% upside from its current share price. Here's my logic.

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Micron develops DRAM and NAND flash memory products critical to artificial intelligence

Micron is a semiconductor company that produces memory chips and storage solutions based on NAND flash and DRAM technology. Both types play an important role in artificial intelligence (AI). NAND functions as long-term storage and loads data into DRAM, where it is processed by central processing units (CPUs) and graphics processing units (GPUs).

The AI infrastructure build-out has created immense demand for memory chips, resulting in a profound supply shortage that has driven prices higher across the board. This year alone, DRAM and NAND prices are projected to quadruple. Naturally, Micron's ability to charge more has led to tremendous financial results.

Micron has reported accelerating revenue growth in five straight quarters

Micron delivered an encouraging report for the fourth quarter of fiscal 2026, which ended in September. Revenue increased 379% to $54.2 billion, marking the fifth straight quarter of accelerating growth. In particular, that momentum was supported by the core data center segment, where sales soared more than 1,000% amid surging demand for AI infrastructure.

CEO Sanjay Mehrotra provided encouraging commentary about the demand environment on the earnings call. "Industry demand has strengthened since our last earnings call," he told analysts. Mehrotra also said Micron does "not have line of sight to when supply and demand will return to balance."

The debate about the durability of the current memory cycle

Bears argue Micron lacks pricing power because memory chips are commodities, meaning prices are largely determined by supply and demand rather than product differentiation. Additionally, memory chips have historically been among the most cyclical segments of the semiconductor industry. Periods of strong demand encourage manufacturers to expand output, eventually creating a supply glut that drives prices down and compresses margins.

Indeed, Micron benefited from explosive demand at the beginning of the pandemic, when businesses were expanding cloud infrastructure and consumers were buying smartphones, laptops, and gaming consoles. But the subsequent downturn exposed the cyclical nature of the industry. As demand normalized and inventories accumulated, Micron suffered five straight quarters of declining revenue and negative earnings.

Bulls argue this particular memory cycle is different because, unlike the transient demand for electronics created by the pandemic, AI is a more durable source of demand. Bulls also point to Micron's growing list of long-term supply contracts, many of which have minimum purchase commitments and price floors. Those contracts provide greater visibility into future revenue and may reduce the severity of future downturns.

Micron CEO Sanjay Mehrotra believes those contracts will make the company's financial performance more resilient. "These multi-year take-or-pay agreements sharpen our long-term supply planning and enhance the durability and predictability of our strong financial performance," he told analysts on the latest earnings call.

Micron stock looks cheap because investors are worried about the next industry drawdown

Wall Street estimates Micron's earnings will increase at 65% annually through fiscal 2028, according to LSEG. That makes the current valuation of 10 times adjusted earnings look cheap. But there is a major caveat: The last memory chip cycle peaked in late 2021, and Micron traded around 6 times adjusted earnings by late 2022.

In that context, the current valuation of 10 times adjusted earnings could drop sharply once the current memory cycle peaks. However, I think that possibility has already been priced into the stock. Micron trades around 4.4 times projected earnings for fiscal 2027.

So what? If Wall Street's earnings estimate is correct and Micron trades at 6 times adjusted earnings after reporting fourth-quarter financial results for fiscal 2027 (which usually happens in late September), the stock will trade at $1,045 per share in late 2027. That implies 37% upside from its current share price of $760.

Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.