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What is the next target after trillions? How high can Micron still fly?

Micron Technology (MU) officially entered the trillion-dollar market cap club on May 26, 2026. As of the close on May 29, 2026, its total market value reached $1.1 trillion, with a stock price of $971 and a trailing twelve months (TTM) price-to-earnings ratio of 45.42. This milestone is not a cyclical rebound but an inevitable result of structural growth under the AI storage revolution, with strong fundamental support for further upside potential.

Core Growth Engine: Lock-in of HBM4 Capacity and Technological Monopoly

Micron’s valuation surge is rooted in its absolute dominance in high-bandwidth memory (HBM4). By 2026, Micron’s HBM4 monthly capacity has increased to 15k wafers, accounting for nearly 30% of its total HBM capacity, with all capacity booked and order schedules extended into 2027. As the “storage heart” of AI GPUs, HBM4 chips sell for more than seven times the price of standard DRAM chips, and their production consumes 3–4 times the capacity of traditional DRAM wafers, creating rigid supply-side constraints. Micron has supplied 12-layer HBM4 for NVIDIA’s next-generation Vera Rubin platform, with technology binding far deeper than industry average.

HBM4 Technology Principles and Deployment in AI Servers

Profit Structure Transformation: From Cyclical Stocks to Growth Stocks Revaluation

Micron is thoroughly shedding the “memory cycle” fate. In Q2 of fiscal 2026, its non-GAAP net profit reached $11k, with a gross margin of 81%, far exceeding historical averages. This profit explosion stems from three major structural shifts:

Long-term Agreements Replacing Short-term Contracts: Signed 5-year strategic procurement agreements with core customers like NVIDIA and Microsoft, locking in prices and volumes, greatly improving profit predictability;

Product Structure Upgrades: The proportion of HBM and high-end DDR5 continues to rise, with HBM revenue contribution exceeding 35% in Q2 2026, driving overall gross margin higher;

1γ Process Mass Production: Micron’s 1γ node became its highest unit output DRAM node in history, with yields over 95%, continuously optimizing manufacturing costs.

Valuation Space: Analyst Consensus Points to a $1,625 Target Price

At the current $971 stock price, it remains significantly below the future expectations of mainstream institutions:

UBS raised its target price to $1,625, representing a 67% upside from current levels, reaffirming a “Buy” rating, believing Micron is shifting from “cyclical pricing” to “growth valuation”;

Citi forecasts 2027 EPS of $104.56 with a target price of $840, based on an 8x P/E, still below the typical 15–20x for tech growth stocks;

Market Consensus: Among 29 analysts, 93.1% rate it as “Buy,” with no “Sell” ratings, and a median target price of $1,625, 1.67 times the current stock price.

Conclusion: Upside Potential Remains, but Entering the “Expectation Realization” Phase

Micron’s current market cap reflects the long-term benefits of AI storage but has not fully priced in its potential for over $10 billion EPS in 2027 and a cumulative free cash flow of $400 billion. Against the backdrop of a persistent HBM supply-demand gap until 2027, difficult-to-copy technological barriers, and deep customer binding, the $1,625 target price is well-supported.

Over the next 12–18 months, the stock’s trajectory will depend on:

Whether HBM revenue share in Q3–Q4 2026 earnings surpasses 40%;

Whether HBM4E mass production in 2027 outpaces Samsung and SK Hynix;

Whether U.S. “Chips Act” subsidies continue to boost domestic capacity.

Currently, Micron has transformed from a “storage chip supplier” into the foundational pillar of global AI computing infrastructure. Its upside potential is no longer defined by cyclical fluctuations but driven by humanity’s insatiable demand for computing power.