After taking a bit of a breather on Monday, Micron (MU +5.34%) stock resumed marching higher on Tuesday, gaining 6.6% through 1:25 p.m. ET after Mizuho analyst Vijay Rakesh raised his price target for Micron stock (again!), and this time from $390 to $480 per share.
If that name rings a bell, it should. A little over two weeks ago, Rakesh was the same Mizuho analyst who raised Micron's price target to $390 after updating his outlook for semiconductor stocks in the new year.
Image source: Micron.
Why Mizuho loves Micron
Last time around, Rakesh simply cited "attractive valuations" as propitious for semi stocks. Today, he gave details on why Micron specifically is primed to run higher:
Because NAND prices are set to explode.
The price of computer NAND memory, says Rakesh in a note covered on TheFly.com, could soar 330% in 2026, followed by another 50% price spike in 2027. Add those gains up, and we're potentially looking at NAND prices in 2027 that are 5 times higher than in 2025.
What's driving the price spike? Simply this: NAND demand is forecast to rise 20% this year, but NAND production will remain flat. And as we all learned in Econ 101, when rising demand meets flat supply, prices rise.
NASDAQ: MU
Key Data Points
Is Micron stock a buy?
What does this mean for Micron stock? In a nutshell, it means more sales. Higher profit margins. More profit. More growth.
This year alone, analysts forecast Micron stock to earn $31.73 per share. That would be more than four times the company's 2025 profit, and implies a price-to-earnings ratio of just 13 on this $414 stock.
With earnings expected to grow 21% more in 2027, the time to buy is now.
