Everyone Is Watching Nvidia. But This Memory Stock Could Be the Next AI Winner

Everyone Is Watching Nvidia. But This Memory Stock Could Be the Next AI Winner

Vandita Jadeja

Mon, September 7, 2026 at 6:00 PM GMT+3 5 min read

Quick Read

• Micron (MU) signed 16 take-or-pay customer agreements worth nearly $100 billion, with CEO Mehrotra pledging gross margins "well above" any prior peak cycle.

• While everyone watches NVDA, Micron's FY27 EPS estimates surged 50% in 90 days to $155, with 92% of analysts rating the stock a Buy.

• Hitting $1,750 requires only an 11x multiple on FY27 earnings, which is still a steep discount to the S&P 500's 22x, implying 86% upside.

• Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and Micron Technology made the cut. Enter your email to see the other nine names and why MU earned its spot. The report is free. Enter your email and see the full list.

Everyone is fixated on NVIDIA (NASDAQ:NVDA), but the memory supplier feeding every AI accelerator has quietly become the market's most explosive story.

Micron Technology (NASDAQ:MU) has returned 708.26% over the past year and 235.19% year-to-date, powered by an unprecedented squeeze in high-bandwidth memory (HBM) supply.

CEO Sanjay Mehrotra summed up the shift on the June earnings call: "AI system performance is architecturally dependent on memory subsystem performance and capacity." With shares at $942.31, the question is whether Micron can push through to $1,750 in 2027.

Wall Street Sees 60% Upside, But That Might Be Too Timid

Analysts are already firmly bullish. The consensus one-year price target sits at $1,513.41, with 92% of covering analysts rating shares Buy or Strong Buy and zero sell ratings. Fiscal 2027 EPS consensus has ratcheted higher fast, climbing from $102.72 ninety days ago to $155.03 today.

Revenue estimates for FY27 now sit at $240.3 billion. Micron has also beaten expectations for seven consecutive quarters, with the latest quarter clearing the top line by 17.6% and EPS by 23.79%.

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Path to $1,750 Per Share

Here is where the math gets interesting. At $942.31, Micron trades at just 6x the FY27 EPS consensus of $155.03. Hitting $1,750 would require only an 11x multiple on those same earnings, still a discount to the S&P 500's roughly 22x forward P/E. The move implies 86% upside from here.

What could get shares there:

• Estimates keep climbing. FY27 EPS has risen 5 times in the trailing 30 days against just one cut. The high estimate is $221.27, which at 11x implies over $2,400 per share.

• Locked-in demand. Micron has signed 16 Strategic Customer Agreements with take-or-pay terms, cumulative minimum revenue near $100 billion, and $22 billion in cash deposits and letters of credit. Mehrotra said floor prices deliver "a very robust gross margin for Micron, well above our peak quarterly margins in any past cycle."

• HBM4 is ramping fast. Micron already booked over $1 billion in HBM4 revenue, and the 12-high ramp is tracking twice as fast as HBM3E. Management sees supply tight "beyond calendar 2027."

• Guidance is climbing. Fiscal Q4 guidance calls for record revenue of $50 billion, non-GAAP EPS of $31, and gross margin near 86%.

Micron's History Says $1,750 Is Within Reach

An 86% year is aggressive, but MU has done far more, far faster. Shares are up 1,228.57% over five years and 5,771.98% over ten.

Over the past 12 months alone, Micron gained more than 700%. The stock's beta of 2.21 reflects that volatility cuts both ways, but it also means outsized moves are part of the DNA.

Bottom Line on $1,750

Reaching $1,750 requires roughly 86% upside, well above Wall Street's already-bullish 60.6% implied return.

The bull case rests on rising FY27 estimates, take-or-pay contracts covering half of future revenue, structurally tight memory supply, and a valuation that still trades at a fraction of the market multiple.

Micron fits the profile of the early-stage tech winners we reverse-engineered in a free playbook on spotting the next Nvidia. Risks are real: capex is running near $27 billion annually, HBM concentration is high, and memory cycles historically turn. Returns at this level should not be expected every year, but we have outlined the blueprint for how Micron could see outsized returns in 2027.

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