Micron shares could nearly triple in value, according to DA Davidson. Is it too late to buy them?

Investors have not yet fully priced in Micron Technology’s growth prospects for the next three to five years, according to DA Davidson analyst Gil Luria. MarketWatch cites his note. On Wednesday, Luria raised his price target for Micron shares from $2,100 to $3,000. The new target implies that the stock could nearly triple from its most recent closing price of $1,045.56. In trading on October 7, the chipmaker’s stock is up nearly 4%.

Luria’s calculation is based on the assumption that, over time, investors will be willing to pay more for every dollar of Micron’s earnings, MarketWatch explains. The target price of $3,000 corresponds to approximately 19 times the projected earnings per share for fiscal year 2027, which ends in August (the forward P/E ratio is the ratio of the stock price to expected earnings per share). Currently, the P/E ratio stands at 6, according to Dow Jones Market Data. Moreover, while Micron’s stock has risen nearly 280% since the start of the year, its P/E ratio has actually declined compared to the end of 2025: expectations for the company’s earnings growth have risen faster than its stock price, explains MarketWatch.

One of the main reasons for Luria’s optimism is that demand for memory chips is expected to outstrip supply for several more years. “Memory is one of the key factors in improving AI performance. The more memory AI models have, the better results they produce and the faster they run,” the analyst noted.

According to the analyst, a large-scale share buyback program could be another important growth driver for Micron. The company is expected to launch the program in December, when the main restrictions on share buybacks—imposed as a condition for receiving government support under the CHIPS Act, through which the U.S. subsidized domestic semiconductor manufacturers that are developing facilities within the country. When a company buys back its own shares, the number of shares outstanding decreases, explains MarketWatch. This, in turn, can increase earnings per share. For Micron’s stock price, this effect could provide additional support.

Wall Street, on the whole, has a positive outlook on the stock of this U.S. manufacturer of data storage devices, RAM, and memory for AI chips: Of the 54 analysts tracking Micron’s stock, 50 recommend buying it, three recommend holding it, and only one recommends selling it, according to MarketWatch data. The analysts’ average price target is $1,582.9, which is approximately 51% higher than the closing price on October 6.

This article was AI-translated and verified by a human editor