Mark Your Calendar: RBC Analyst Sees Massive 23% Upside Ahead for Micron (MU) Stock

Micron Technology MU +5.06% ▲ is drawing fresh attention after RBC Capital Markets analyst Srini Pajjuri raised his price target to $525, implying a 23% gain from current levels. The move comes ahead of the company’s highly anticipated Q2 FY2026 earnings report on Wednesday, with shares currently trading at $450.25.

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HBM Demand Fuels Micron Stock Upside in 2026

Analyst Pajjuri hiked his MU price target to $525 from $425 while maintaining an “Outperform” rating. The RBC analyst views MU stock as rising through 2026, potentially trading at 7x estimated 2027 earnings and 2.7x projected book value, reflecting anticipated profit and asset growth. The firm cites strong demand for high-bandwidth memory (HBM), DDR (standard RAM for PCs and servers), and eSSD (embedded storage in devices) as the main drivers behind the forecast.

Demand for HBM, in particular, is projected to remain robust through 2027, as next-generation processors such as Nvidia’s NVDA +2.35% ▲ Rubin Ultra chips may require roughly 3.5 times as much HBM as current models. This could tighten global memory supply and support higher prices, which the analyst says may benefit Micron by supporting stronger profits and keeping its stock valuation elevated.

Analysts Back Micron as It Climbs on Expansion

Micron shares have surged over 5% intraday, with year-to-date gains exceeding 57%, according to TipRanks data. UBS analysts joined the bullish sentiment, raising price targets on the company’s robust product demand and profitability amid memory shortages projected through 2028. The rally also reflects the company’s recent operational moves.

On March 15, Micron announced plans to build a second manufacturing facility at its newly acquired Tongluo site in Taiwan and confirmed the completion of its acquisition of Powerchip Semiconductor Manufacturing Corporation’s P5 site. These steps are expected to increase production capacity for memory and storage components. The announcements, coming ahead of Micron’s Q2 FY2026 earnings call, have fueled investor enthusiasm for the company’s aggressive expansion strategy.

Is Micron a Good Stock to Buy?

According to TipRanks, Micron Technology (MU) currently holds a Strong Buy consensus based on ratings from 27 Wall Street analysts over the past three months. The analysts’ average price target is $455.74, with forecasts ranging from $310 to $650. To get more information on semiconductor stocks like Micron, visit the TipRanks Stocks Comparison Center and gain insights into top players such as NVDA, Intel INTC +5.24% ▲ , Advanced Micro Devices AMD +2.64% ▲ , and Samsung Electronics SSNLF +54.05% ▲ .

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