Micron Technology stock crossed $1,000 for the first time, trading at $1,044.75 in premarket on Monday after a 6.6% jump the session before.
The stock is up more than tenfold over the past year. That’s not a typo.
Raymond James analyst Melissa Fairbanks moved her price target to $1,100 from $530, reiterating an Outperform rating. The old target was already well above the street average of $767.73, per FactSet.
Fairbanks’ revised target is built on a multiple of 10 times her fiscal 2027 adjusted earnings forecast. She says that’s appropriate given the growth outlook, margin stability, and shareholder returns.
“While the share price and multiple continue to reach new highs, we note limited pushback among the investor base; there’s a general understanding that it really is ‘different this time,'” Fairbanks wrote.
The note followed meetings across the semiconductor supply chain in South Korea, Taiwan, and Japan. Raymond James came away saying memory supply is largely committed for years ahead, with customers offering greater visibility through longer-term purchasing agreements.
Micron has historically traded at a low forward P/E because memory chips are cyclical — boom follows bust. That playbook is being rewritten.
Its forward P/E has expanded to 11.4 times, up from 4.4 times as recently as April. The shift reflects investor confidence that long-term pricing agreements will smooth out the volatility that has punished the stock in past cycles.
Fairbanks acknowledged the unusual territory: “Admittedly, we have no historical reference to use as a comparison, given the rapidly changing demand landscape and more rational business models across the industry.”
Raymond James did flag some near-term limits. Industry capacity constraints could cap additional revenue upside even with demand running hot. Gross margins may also ease gradually from peak levels as conditions normalize.
Still, the firm said any pullback in momentum would likely reflect supply conditions, not weakening demand.
TrendForce added fuel to the bull case this week, raising its global memory market revenue forecast to $889.3 billion for 2026, up sharply from its prior estimate of $551.6 billion.
By 2027, TrendForce sees the market hitting $1.28 trillion — versus its earlier forecast of $842.7 billion.
That kind of upward revision doesn’t happen without real demand signals. AI infrastructure spending is the primary engine, and Micron sits at the center of it.
Micron is due to report earnings on June 24. Raymond James maintained its constructive stance heading into that print, citing resilient pricing and sustained AI-related spending as the key supports.
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