Micron (NASDAQ:MU) Shares rebounded from a two-day decline this morning, gaining 3.3% as of 11:30 a.m. ET.
You can thank Japanese investment bank Mizuho for that.
Raising his price target from $5 to $270 per share yesterday, Mizuho predicts a strong rebound in Micron’s earnings when the semiconductor company reports results on December 17. DRAM prices are rising, Mizuho says, and demand for high-bandwidth NAND memory (HBM) for AI applications is increasing. Currently, less than 10% of Micron’s sales come from HBM. But it is notable that DRAM gross profit margins appear to be increasing. get over HBM margins at the beginning of 2026.
And about 60% to 65% of Micron’s DRAM supply contract prices reset quarterly, Mizuho notes, meaning the company should see an immediate benefit from higher prices in just a few months.
Analyzing all of these numbers and forming a forecast for the coming year, Mizuho predicts that Micron will generate $56 billion in revenue in 2026 and earn $17.89 per share on these sales; It will then proceed to increase these figures by 18% (for sales) to $66.1 billion, and by 21% (for profits) to $21.69 in 2027.
At a share price of $235, this means Micron stock, which costs more than 30 times following Current earnings could cost as little as 13 times next year’s earnings and less than 11 times projected 2027 earnings.
Do you think it’s cheap enough to buy, and that profits will grow by 21%? Mizuho too, and so do I.
Micron stock is a GARP buy.
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