D.A. Davidson thinks Micron could almost triple from here. Is it too late to buy?

Investors have yet to fully price in Micron Technology’s growth prospects over the next three to five years, argues D.A. Davidson analyst Gil Luria in a note cited by MarketWatch. On Wednesday, Luria raised his target price on Micron from $2,100 to $3,000 per share. The new TP implies the stock could almost triple from its last close of $1,045.56 per share. Micron shares were up almost 4% in Wednesday trading as of this writing.

Luria’s valuation is based on the assumption that investors will eventually be willing to pay more for every dollar Micron earns, MarketWatch explains. The $3,000 per share target price corresponds to around 19 times estimated earnings per share for fiscal 2027, which ends in August. The forward price/earnings multiple currently stands at six, according to Dow Jones Market Data. Even though Micron has soared almost 280% year to date, the price/earnings multiple has actually gone down from the end of 2025 because expectations for the company’s earnings growth have risen faster than its stock, MarketWatch points out.

One major reason for Luria’s optimism is that demand for memory chips is expected to outstrip supply for several more years. “Memory is a lever for better AI performance. AI models generate better results with more memory, run faster with more memory,” he wrote.

Another important catalyst for Micron, in Luria’s view, could be a major share-buyback program. The company is expected to launch it in December, when the main restrictions on share repurchases imposed as a condition of its government funding under the U.S. CHIPS Act expire. Under the legislation, the U.S. subsidized semiconductor manufacturers expanding domestic production. When a company buys back its own stock, it reduces the number of shares outstanding, which should increase earnings per share. For Micron stock, this effect could provide additional support.

Wall Street is broadly upbeat on the stock of the U.S. maker of data-storage products, DRAM, and memory for AI chips. Of the 54 analysts covering Micron, 50 have “buy” calls, three have “hold” ratings, and only one has a “sell” recommendation, according to MarketWatch data. The average target price is $1,582.90 per share, around 51% above Tuesday’s closing price.