Aletheia Capital Raises Micron Price Target to $1,600
Aletheia Capital analyst Warren Lau raised the price target on Micron Technology (NASDAQ: MU) to $1,600.00 while maintaining a Buy rating.
“We raise our TP to $1,600, based on 10x CY27E PER, as we shift our valuation framework from historical peak PBR ($650) to PER.
This re-rating reflects our constructive view on sustained AI demand and the surge in memory content across AI hardware systems, resulting in memory vendors’ rapid revenue growth and, critically, robust FCF generation—i.e., real earnings.
In the near term, we expect memory prices to rise 30–40% QoQ in C3Q26 and HBM ASP to more than double YoY in CY2027.
Importantly, memory is becoming the most critical component within AI hardware, with its content value to rise to >70% in CY2027, from mid-40% in CY2025.
In certain memory-intensive racks, the memory mix could exceed 90%. We forecast MU’s EPS to jump 8.5x in CY27E, followed by a further 1.8x expansion in CY28E.
This implies roughly 15x cumulative EPS growth and $350–400bn of FCF generation in FY26-28E. Key risks: end-market demand, execution, and geopolitics.”
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