Micron Technology shares MU climbed on Wednesday despite broader pressure on equities from higher oil prices and rising Treasury yields, after DA Davidson analyst Gil Luria raised his price target on the memory-chip maker to $3,000 from $2,100.
The new target implies roughly 190% upside from the stock’s trading level on Wednesday, suggesting Luria expects Micron shares to nearly triple as the company benefits from a sustained boom in artificial intelligence infrastructure.
The stock was up about 2.39% around mid-morning.
Investors are still “early in their journey” when it comes to understanding Micron Technology and valuing its stock, Luria said.
The analyst argued that the market has yet to fully reflect Micron’s expected growth over the next three to five years.
He also believes the company’s current valuation remains unusually low compared with the earnings growth it is expected to deliver.
Investors expected to assign higher valuation to stock
Luria’s $3,000 target is based partly on the expectation that investors will eventually assign a higher valuation multiple to each dollar of Micron’s earnings.
His forecast assumes Micron trades at about 19 times estimated earnings per share for fiscal 2027, which ends in August.
The stock currently trades at roughly six times estimated earnings for that year, according to Dow Jones Market Data.
Micron shares have already risen about 230% this year, but the stock’s valuation multiple has actually fallen since the end of 2025 as earnings expectations have increased faster than the share price.
Memory chip supply to remain tight for several years
A key part of Luria’s bullish thesis is the expectation that demand for memory chips will exceed supply for several years.
The rapid expansion of AI data centers has transformed the outlook for memory manufacturers.
AI systems require large quantities of advanced memory to process increasingly complex models, with high-bandwidth memory, or HBM, becoming particularly important for AI accelerators.
“Memory is a lever for better AI performance. AI models generate better results with more memory, run faster with more memory,” Luria wrote.
That dynamic could give Micron greater pricing power if supply remains constrained while chipmakers and cloud companies continue expanding AI infrastructure.
Micron is one of the major global suppliers of DRAM and HBM memory, positioning it to benefit from the increasing memory intensity of AI servers.
Buyback could provide another boost
Luria also identified a potential share repurchase program as another catalyst for Micron stock.
The company is expected to launch a major buyback program in December after becoming free of significant restrictions on share repurchases that were attached to its government funding under the US CHIPS Act.
Share buybacks reduce the number of shares outstanding, allowing a company’s earnings to be spread across fewer shares.
That can increase earnings per share and potentially support a higher stock valuation, particularly when earnings are already growing rapidly.
With the stock already up 230% this year and Luria pointing to nearly triple-digit upside from here, Micron is likely to remain a name long-term investors keep watching through investment apps.
Taiwan workers authorize strike
Separately, a union representing workers at Micron’s operations in Taiwan said on Wednesday that its members had authorized a strike over a dispute concerning the company’s bonus and profit-sharing arrangements.
The union, which represents employees at Micron’s operations in Taoyuan, said 1,994 members, or 99% of those who voted, supported strike authorization.
The timing and details of any industrial action have yet to be decided.
Taiwan is a critical manufacturing base for Micron, particularly for DRAM and HBM chips used in AI servers.
A strike could therefore add another layer of uncertainty to an already tight global memory market.
The union said it still hoped Micron would put forward a concrete profit-sharing proposal before workers resorted to a strike.
It is encouraging members to take a day off on October 19 to attend a rally in Taipei, which it said would not constitute a strike.
Micron employs around 15,000 people in Taiwan, with separate unions representing workers at its Taoyuan and Taichung facilities.
The two unions together represent more than 80% of the company’s Taiwan workforce.
Profit-sharing dispute adds to supply concerns
Mediation between Micron and the Taoyuan union ended without an agreement in September, while negotiations with the Taichung union remain ongoing.
The dispute centers on Micron’s rewards for fiscal 2026, which the company announced in September after what it described as an “extraordinary year.”
More than 60,000 employees globally were eligible for rewards, including a T$1 million ($31,386) cash bonus for employees in Taiwan.
The Taoyuan union said the package did not address its demand for a permanent profit-sharing mechanism.
It also criticized Micron for announcing the rewards while labour mediation was underway without first reaching an agreement with the union.
Micron has not linked the fiscal 2026 rewards to the labour dispute.
The company said Wednesday that it takes employees’ concerns seriously and remains committed to engaging with its unions in good faith.
“We will continue to work through the established dialogue and mediation processes,” Micron said, adding that it would hold another mediation session with the Taichung union later this month.
Taiwan’s labour ministry said it respected the union’s strike vote and urged Micron to consider workers’ concerns, make concrete proposals and continue negotiations.
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