A target this far above the pack sharpens the valuation debate across memory stocks: if investors accept that AI has broken the traditional boom-and-bust pattern, multiples across the sector have room to expand. The counterargument is that markets have historically refused to pay up for peak memory earnings, and a sub-10 times multiple on a stock up more than 260% this year suggests many investors still expect the cycle to turn. Micron’s December buyback is a nearer-term, more tangible support for the shares than any re-rating. Any sign of easing memory prices or faster capacity additions would test the bull case quickly.
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Micron’s profits have grown faster than its share price, and D.A. Davidson’s Gil Luria is betting investors will eventually pay a growth-stock multiple for a company the market still treats as a cyclical.
- D.A. Davidson’s Gil Luria raised his Micron target to $3,000 from $2,100, implying the shares could nearly triple from just above $1,000
- The target assumes about 19 times fiscal 2027 earnings, against roughly six times now; Micron’s multiple has fallen this year as earnings forecasts outpaced a more than 260% share rally
- Luria expects memory demand to exceed supply for several years, driven by AI workloads that perform better with more memory
- He also flags a large buyback expected in December, once Chips Act limits on repurchases fall away
- His target is far above the Street: ahead of 30 September results, the average target was around $1,560, Wells Fargo was at $1,400 and Goldman Sachs had a Hold rating at $1,100
- Micron reported fiscal fourth-quarter revenue of about $54 billion, above forecasts, and guided the current quarter to around $61.5 billion
Micron Technology’s shares could almost triple as investors come to appreciate the memory chipmaker’s growth prospects, according to D.A. Davidson analyst Gil Luria, who on Wednesday raised his price target on the stock to $3,000 from $2,100, MarketWatch, part of Dow Jones, reported (may be gated).
Luria argued that investors are still at an early stage in working out how to value Micron, and that the market has not properly priced in the company’s expected growth over the next three to five years. With the shares trading just above $1,000, his target implies upside of close to 200%.
The call rests on valuation rather than on more aggressive earnings forecasts. Luria’s target assumes Micron trades at about 19 times expected earnings per share for fiscal 2027, compared with roughly six times now, according to Dow Jones Market Data. That multiple has actually shrunk since the end of 2025, even though the stock has risen more than 260% this year, because earnings expectations have climbed faster than the share price. Working backwards, the target implies fiscal 2027 earnings of around $158 a share, broadly in line with the Street rather than above it. Wells Fargo, for example, forecasts about $166.
Luria’s optimism is built on his view that demand for memory chips will exceed supply for several years, as artificial intelligence models run faster and produce better results with more memory. He also highlighted a significant buyback programme expected in December, once Micron is released from repurchase restrictions attached to its Chips Act government funding. Buybacks reduce the share count, which can lift earnings per share.
The target stands well apart from the rest of Wall Street. Ahead of Micron’s results on 30 September, the average analyst target was around $1,560, Wells Fargo had trimmed its target to $1,400, and Goldman Sachs held a neutral rating with a $1,100 target. Those results were strong. Fiscal fourth-quarter revenue came in at about $54 billion, ahead of forecasts near $51.5 billion, and Micron guided the current quarter to around $61.5 billion, well above consensus.
The hurdle for Luria’s thesis is history. Memory stocks have traditionally traded on low multiples at peak earnings because investors anticipate the next downturn. His target effectively bets that AI demand has changed that pattern, and Micron’s next guidance and memory pricing trends will show whether the market agrees.
This article was written by Eamonn Sheridan at investinglive.com.