MU
Micron’s getting a glow-up
Micron has spent years being treated like the spreadsheet equivalent of beige wallpaper: important, sure, but not exactly exciting. D.A. Davidson thinks that framing is overdue for retirement.
Analyst Gil Luria lifted his 12-month price target to $3,000 from $2,100 and made the case that AI has changed memory chips from a cyclical commodity into a core part of the data-center stack. In other words, memory isn’t just sitting in the corner storing stuff anymore — it’s helping the AI actually think faster and better.
The AI plot twist
Luria’s big argument is simple: the more memory you feed a model, the better it performs. That means Micron’s products are now tied to the same AI buildout that’s been juicing GPUs and CPUs, which could make the market willing to pay up.
He also pointed out that Micron trades at around 6x earnings, while peers like AMD and Intel are closer to 40x or more. That’s a giant gap, and bulls are basically saying the market is still pricing Micron like it’s stuck in the memory-cycle penalty box.
Why investors should care
A rerating matters just as much as earnings growth. If Micron keeps landing longer-term supply agreements with big cloud players like Microsoft, Amazon, and Alphabet, the business could get more predictable — and less like the old boom-bust memory soap opera.
There’s also a buyback kicker waiting in the wings: Micron can resume repurchases when restrictions expire on Dec. 9. If management follows through and uses excess cash flow to buy stock, that gives investors another support beam under the shares.
Big picture: Micron’s bull case is basically: the AI era needs a lot more memory than Wall Street wants to admit, and the market may eventually have to stop treating that like a boring commodity story.