Even with its impressive 740% return over the past 12 months, some analysts believe Micron Technology (NASDAQ: MU) could still go higher. Three analysts recently raised their price targets for the stock to $1,500, representing a 45% increase from its current price, as of this writing.
Here’s why this bull case for Micron stock is rooted in reality and why now could be a good time to buy shares despite their recent volatility.
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Here’s why Micron has a chance of reaching $1,500
Investors have been wondering when the boom in artificial intelligence (AI) might fizzle out and if some stocks are currently in an AI bubble. And while some are certainly benefiting from the technology without having a strong foundation in it, that’s not the case for Micron.
Consider the huge AI supercycle currently underway, which is driving sales of its memory processors. This year alone, some of the leading technology companies will have $750 billion in capital expenditures, mostly for AI.
That’s a huge amount of AI spending, and it may not slow down anytime soon. Alphabet has already said it will spend up to $190 billion this year and added, “And next year, we expect it to significantly increase compared to 2026.”
All of this spending is doing two very important things for Micron: It’s driving huge sales of its memory chips and causing its processor prices to skyrocket due to demand.
The results speak for themselves. Sales rose 345% in the 2026 third quarter to $41.5 billion, and adjusted earnings per share spiked more than 1,300% to $24.67 in the quarter. Management said recently that the run rate for its data center revenue (where sales of its memory chips live) is $100 billion for 2026.
In short, demand is high, allowing Micron to charge more for its memory processors and resulting in skyrocketing profits. So when analysts and investors look at the current data center boom and the company’s soaring profits from it, it’s not hard to imagine investors continuing to drive up its share price as AI infrastructure investments continue.
Some volatility is inevitable along the way
The stock could reach $1,500, but it’s also worth noting that some investors are questioning some of the AI spending from tech companies, which has led to market volatility.