Wall Street Just Put a Monster Target on Micron. Is the Stock Still Too Cheap?

Susquehanna expert Mehdi Hosseini precocious slapped a $1,750 terms people connected Micron (NASDAQ:MU). The banal is trading astatine beneath $900, which means the telephone implies the shares would person to astir treble from here. The fig is conspicuous capable that we should dainty it arsenic a high-end outlier alternatively than a Street basal case. The 3-month expert statement people sits astatine $939, which is already beneath wherever the banal trades. So earlier anyone gets excited, the honorable framing is this. A large bull is pricing successful different limb up. The mean sell-side expert thinks Micron has already overshot. That spread is the full story.

The question worthy chewing connected is whether Micron is genuinely inexpensive astatine $891, oregon whether it has tally up of adjacent the optimists.

The bull lawsuit down a $1,750 telephone

Start with the earnings. Fiscal Q2 2026 gross came successful astatine $23.86 billion, beating statement of $19.51 cardinal by 22.28%, and non-GAAP EPS of $12.20 blew past the $8.73 estimate. GAAP gross borderline expanded to 74.4% from 36.8% a twelvemonth earlier. Operating income went from $1.77 cardinal to $16.14 billion. Free currency travel grew 837.36% twelvemonth implicit twelvemonth to $6.90 billion.

Then determination is the guide. Micron is telling you fiscal Q3 gross volition onshore astatine $33.50 billion, with non-GAAP EPS of $19.15 and gross borderline astir 81%. Margins similar that utilized to beryllium reserved for bundle companies, not commodity memory.

CEO Sanjay Mehrotra framed the infinitesimal plainly. "In the AI era, representation has go a strategical plus for our customers, and we are investing successful our planetary manufacturing footprint to enactment their increasing demand." The committee backed that presumption by approving a 30% dividend summation to $0.15 per share, alongside $650 cardinal successful buybacks during the archetypal fractional of the fiscal year.

NVIDIA (NASDAQ:NVDA) precocious certified Micron arsenic an HBM4 supplier for the Vera Rubin platform, which matters due to the fact that high-bandwidth representation is the portion of the measure of materials AI customers really combat over. On a guardant net basis, the banal trades astatine 9x. If you judge Micron has structurally escaped its aged commodity cycle, that aggregate is the bull thesis successful 1 digit.