Micron Bulls See 110% Upside as AI Memory Demand Tightens

Micron Technology (MU) is trading around 7x forward earnings, but a bull case from Melius sees roughly 110% upside to $2,200 driven by long-term, contracted AI/cloud demand for high-bandwidth memory (HBM) and 16 Strategic Customer Agreements totaling about $100 billion in minimum contracted revenue with deposits. The article notes MU’s bull thesis hinges on HBM capacity remaining sold out through multi-year horizons and margins staying above prior peaks, even as the broader memory space faces potential cycle overshoot. MU is covered by dozens of analysts (about 48), with a consensus target around $1.5k, while peers Western Digital and Seagate show lower implied upside. The bull case requires belief that the AI memory cycle sustains demand beyond 2027, and risks include price moderation and capex-driven volatility in memory pricing.