Micron Bulls See Big Upside, But Is the Rally Truly Justified?

Micron Technology trades near $900 with a forward multiple around 8–9x after a strong Q2 beat and guidance, as NVIDIA certifies MU as an HBM4 supplier for the Vera Rubin AI project. The company’s Q3 guide ($33.5B revenue, $19.15 EPS, ~81% gross margin) and a 30% dividend raise plus $650M in buybacks bolster the bull case that AI-memory demand could keep margins elevated. Yet insiders have been net sellers while the stock has surged well over the past year, underscoring remaining cyclicality in memory stocks. A high-profile target of $1,750 contrasts with consensus around ~$939, signaling a wide split on valuation. If demand stays robust, 8–9x forward earnings could look cheap; if AI demand slows or memory cycles turn, the stock could face a meaningful pullback.