Key Stats for Micron Stock
- Price change for Micron stock in the last 6 months: 143%
- $MU Stock Price as of Aug. 14: $972
- 52-Week High: $1255
- $MU Stock Price Target: $1502
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What Happened?
Micron (MU) stock got a fresh vote of confidence on Friday after NewStreet Research upgraded the memory chip maker to Buy, setting a $1,250 price target. Shares had already climbed 4% on Thursday, closing at $949.83.
Analyst Pierre Ferragu argued that Micron stock is breaking away from the memory industry’s typical boom-and-bust cycle.
He pointed out that Micron stock has surged more than 10 times since its lows in April 2025, while the company’s production costs, measured by cost of goods sold, are up only about 25% over that same period.
NewStreet said this kind of divergence between stock price and underlying production value hasn’t happened in past industry cycles.
The upgrade builds on a research series NewStreet started in July, examining whether this memory cycle is structurally different from previous ones.
By 2030, the firm expects Micron to hold more than $600 billion in cash and generate over $150 billion in annual free cash flow, numbers it described as a peak for the company.
Looking further out, NewStreet models a much softer downturn than the industry has seen historically, with a worst-case cash burn of just $18 billion and more than $100 billion generated annually across a four-year down cycle.
This bullish outlook aligns with what Micron reported in its most recent quarter. Revenue hit $41.5 billion, up 74% sequentially and 346% year-over-year, marking the company’s fifth straight quarterly revenue record.
Gross margin came in at 84.9%, more than double last year. CEO Sanjay Mehrotra said data center revenue alone exceeded $25 billion in the quarter, running at an annualized pace of over $100 billion.
A big driver behind NewStreet’s optimism is Micron’s newly signed strategic customer agreements, or SCAs.
The company has now completed 16 of these multiyear deals across data center, consumer, and automotive customers, representing about 20% of Micron’s DRAM volume and a third of its NAND volume through 2030.
These agreements come with floor prices that management says would still deliver gross margins above any past peak, giving Micron stock a level of earnings visibility it hasn’t had before.
NewStreet also expects AI to keep driving memory demand, projecting it will make up two-thirds of the mix and support 15% annual growth beyond 2030, well above the 10% average seen over the past 20 years.
The firm argued that high-bandwidth memory in particular deserves a premium valuation because it’s less cyclical than traditional commodity DRAM.
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What the Market Is Telling Us About Micron Stock
NewStreet’s upgrade reflects growing Wall Street conviction that Micron’s business model has fundamentally changed, thanks to long-term supply agreements and AI-driven demand that looks less prone to the sharp swings memory stocks have historically experienced.
With Micron guiding to record fiscal Q4 revenue of $50 billion and record EPS of $31 per share, the market appears to be rewarding the company’s shift toward more predictable, contracted revenue streams.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
