Why Micron Stock Just Popped
Key Points
Lynx Equity maintains a $1,325 price target on Micron.
Micron stock costs 21 times trailing earnings, but is pegged for triple-digit earnings growth.
- 10 stocks we like better than Micron Technology ›
Micron (NASDAQ: MU) stock jumped 4.5% through 10:35 a.m. ET Friday -- and you can thank private equity firm Lynx Equity for that.
In a note out last night, Lynx predicted a "breakout" for Micron stock, reiterating its opinion that $1,000 Micron stock could rise more than 30% to hit $1,325 within a year.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Micron.
Why Lynx loves Micron stock
Lynx didn't always feel this way. As recently as June, Lynx was warning investors away from Micron, calling the stock "uninvestible" because of the massive swings in its stock price as momentum traders poured into -- and out of -- Micron on little more than hype and enthusiasm for the AI revolution.
Make no mistake. Lynx thought "the fundamentals remained strong" at Micron, and valued the stock at $1,300-plus. But with Micron trading north of $1,200 already in June, there just wasn't a lot of room for upside -- and too much room for downside if AI investors panicked. (Which they did, sparking a 45% sell-off in Micron stock through late July.
What's next for Micron stock
But that was then, and this is now. And now, thanks to the sell-off, Micron stock is once again trading at levels that give investors a decent chance to earn a profit. (Indeed, up 52% off their lows, Micron's already delivered some nice profits to investors who spotted the opportunity early.)
So are there more gains in store?
Lynx thinks so. Demand for high-bandwidth memory (HBM) is keeping DRAM and NAND spot prices elevated, as StreetInsider.com reports today. And with Micron stock still down nearly 20% from its highs, there's a real chance the stock could "breakout" again, as Lynx predicts.
Priced at 21x earnings, but expecting triple-digit earnings growth over the next five years, Micron stock is priced to move.
Should you buy stock in Micron Technology right now?
Before you buy stock in Micron Technology, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $445,833!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,402,153!*
Now, it’s worth noting Stock Advisor’s total average return is 993% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of September 4, 2026.
Rich Smith 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.
Recommended Articles
