Prediction: Micron Could Be the Most Important AI Stock After Nvidia

Micron (MU), the only US-based high-bandwidth memory supplier, surged 702% in one year but earns a HOLD near fair value at $960.

NVIDIA (NVDA) trades at a 43 P/E versus Micron's 22, and every Blackwell GPU sold drags HBM4 memory demand along with it.

Sanjay Mehrotra secured $100 billion in take-or-pay customer agreements, shielding Micron from memory's notorious cyclicality while the bear case still targets $703.

Micron Technology ( NASDAQ:MU ) has quietly become the second most important AI stock on the market. Every Blackwell rack, every hyperscaler build, and every agentic AI workload runs on high-bandwidth memory, and Micron is now the only US-based supplier of it.

Our 24/7 Wall St. price target for Micron is $959.72 over the next 12 months, versus a current price of $932.97. That implies 2.87% upside and a hold rating with 90% confidence.

A Vertical Move That Left the Model Behind

Micron is up 227.09% year to date and 702.68% over the past year. Shares are flat over the last month at +1.31%, consolidating below the $1,254.81 52-week high.

Fiscal Q3 2026 was the catalyst. Revenue hit $41.46 billion, up 345.72% year over year, on non-GAAP EPS of $25.11 against a $20.2843 estimate. GAAP gross margin expanded to 84.6%.

Management guided Q4 revenue to $50 billion plus or minus $1 billion and EPS to $31. CEO Sanjay Mehrotra disclosed 16 Strategic Customer Agreements carrying roughly $100 billion in minimum-price RPO.

The bull case is straightforward. HBM4 has generated over $1 billion in revenue and its ramp is tracking twice as fast as HBM3E 12 high. Management expects industry memory supply-demand to remain tight beyond calendar 2027. The bull-case scenario points to $1,333.56 in 12 months, a 42.94% return. Wall Street's average target sits at $1,515.11 with 9 strong-buys and 31 buys.

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Memory is famously cyclical. Micron carried $7.826 billion in Q3 capex and Q4 capex is guided to roughly $10 billion, with fiscal 2027 running higher. A single hyperscaler pulling HBM4 orders would hit results hard given disclosed lead-customer concentration.