Micron Technology (MU +4.44%) was in absolutely stunning form on the stock market over the past year. Shares of the memory specialist shot up by an incredible 341% over this period, propelled by enthusiasm over the company's outstanding growth in its revenue and earnings. Analysts, however, are now suggesting that Micron stock may not deliver further upside. Its 12-month median price target of $41...
Micron Technology (MU +4.44%) was in absolutely stunning form on the stock market over the past year. Shares of the memory specialist shot up by an incredible 341% over this period, propelled by enthusiasm over the company's outstanding growth in its revenue and earnings. Analysts, however, are now suggesting that Micron stock may not deliver further upside. Its 12-month median price target of $417.50 is almost in line with its current stock price. I think Micron will prove Wall Street's estimates wrong and deliver significantly bigger gains in the coming year. Here's why. Micron stock is cheap despite its remarkable rally Investors who missed out on Micron's incredible run can buy in now at a really attractive valuation. Its forward earnings multiple of 12.6 is half the average forward earnings multiple of the tech-laden Nasdaq-100 index. This makes Micron a no-brainer buy, since its earnings growth is poised to significantly exceed the broader market's average earnings growth. A potential 309% jump in Micron's earnings in the current fiscal year is well above the 14% average growth that companies in the S&P 500 are forecast to deliver. What's more, analysts expect a 31% increase in Micron's earnings in the next fiscal year as well to $44.55 per share, double the average growth of the S&P 500 companies. However, don't be surprised to see Micron's earnings land ahead of Wall Street's ambitious expectations. After all, the memory market is set to remain supply-constrained through 2028, primarily due to artificial intelligence (AI)-fueled demand. Expand NASDAQ : MU Micron Technology Today's Change ( 4.44 %) $ 19.63 Current Price $ 461.43 Key Data Points Market Cap $520B Day's Range $ 445.11 - $ 462.71 52wk Range $ 61.54 - $ 462.73 Volume 1.6M Avg Vol 35M Gross Margin 45.53 % Dividend Yield 0.10 % AI servers are using up the supply of dynamic random-access memory (DRAM) and NAND flash chips that Micron manufactures. That's not surprising, as AI accelerators are equippe...