Wall Street Just Put a Monster Target on Micron. Is the Stock Still Too Cheap?

Key Points:

• Susquehanna analyst Mehdi Hosseini set a $1,750 price target for Micron, implying the stock would need to roughly double from its current sub-$900 price, contrasting with the 3-month analyst consensus target of $939, which is below the current trading price.
• Micron's strong fiscal Q2 2026 earnings beat expectations significantly, with revenue of $23.86 billion and non-GAAP EPS of $12.20, alongside a dramatic increase in gross margin to 74.4%, and CEO Sanjay Mehrotra highlighted memory's strategic importance in the AI era.
• The company projects even higher fiscal Q3 revenue of $33.50 billion and non-GAAP EPS of $19.15, supported by new AI-related contracts like NVIDIA certifying Micron as an HBM4 supplier, and the board approved a 30% dividend increase and $650 million in buybacks.
• Despite the strong performance, Micron remains a cyclical business with a stock price up 668% over the past year, raising concerns that gains could quickly reverse if AI-driven demand proves temporary and supply catches up.
• The key test for Micron's valuation lies in meeting or exceeding its fiscal Q3 guidance; success would support the bullish case that the memory cycle has structurally changed, while failure could lead to a sharp stock decline, with most analysts remaining cautious.