Micron stock (NASDAQ: MU) rally looks impressive as the stock has climbed about 40% this month and was changing hands at $524.56 on Tuesday.
That move has now drawn two separate $700 price targets, one from Melius Research’s Ben Reitzes in a fresh April 27 initiation and another from Cantor Fitzgerald’s C.J. Muse in March.
The question for investors is simple: Is Wall Street finally pricing Micron stock correctly, or is the market getting ahead of itself again?
Micron stock: Why two analysts just said $700?
The bullish case starts with high-bandwidth memory, or HBM, the chip stack that helps power AI systems.
Micron’s latest results and guidance explain the tightness of the market.
In its March quarter, the company said AI demand and supply constraints were driving record earnings, and it forecast fiscal third-quarter revenue of $33.5 billion, well above Wall Street’s estimates.
On the earnings call, Micron also said it expects market conditions to remain tight beyond 2026 and guided fiscal third-quarter gross margin to about 81%.
That is the core of the $700 argument.
Reitzes and Muse are effectively betting that Micron’s pricing power will last longer than most cyclical memory rallies do, because AI data centers are consuming more memory and the supply side is constrained.
Micron has said it expects HBM4 volume shipments to ramp, while management has also pointed to structural demand strength from AI servers.
UBS has echoed the broader thesis, saying the memory market could be in a supercycle that may “defy traditional analytical norms.”
MU’s extraordinary run
Micron’s rise has been powered by a very simple mix of earnings growth and investor excitement around AI infrastructure.
The stock’s 52-week low was $73.50, so Tuesday’s price is more than seven times that level.
The company’s fiscal first-quarter 2026 revenue came in at $13.6 billion, up from $8.7 billion a year earlier, while non-GAAP EPS rose to $4.78 from $1.79.
Micron has gained more than 61% this year, after a huge 2025 advance.
The $700 question: What could go wrong?
The bear case is just as clear. First, margins may already be near the top of the cycle.
Micron guided gross margin to 81%, but that level is unlikely to be permanent if supply catches up.
Second, memory remains a cyclical business, and Micron itself is committing to more than $25 billion of fiscal 2026 capex.
Bigger capacity is good for growth, but it also raises the risk of oversupply later on.
Third, consensus is still more restrained than the headline targets suggest.
MarketBeat puts Micron’s average price target at $472.72, below Tuesday’s $524.56 share price, even though the highest target on its list is $700.
Put simply, Micron has already outrun the mainstream view.
Add the risk that AI software becomes more memory-efficient over time, and the stock’s path higher may not be smooth.
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