TD Cowen predicts Micron stock will eventually hit $600.
TD sees $50 a year in earnings power at Micron.
But Barron’s sees a rising threat from Samsung.
Micron (NASDAQ: MU) stock tumbled 6% Monday morning before clawing its way back to about a 1.8% loss as of 12:55 p.m. ET in the afternoon. But it’s curious that Micron dropped at all today…
Because today was the day that analysts at TD Cowen predicted Micron stock will surge 55%, and eventually hit $600 a share.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
Micron will earn $60 per share this year, rather than the $50 it previously forecast, says TD Cowen. At 10 times forward earnings, this implies a $600 share price for the semiconductor stock.
And that’s just to start.
DRAM supplies will remain tight for “multiple years,” reports TheFly.com, boosting prices for the computer memory product. Micron might not earn $60 every year, but TD’s analysts think “normalized” earnings for the stock could be $50. Positing a 12-times normal earnings valuation for the company, TD again comes up for a $600 valuation for Micron stock.
So why is all the above adding up to Micron stock falling in price today?
Actually, as Barron’s reports, the reason Micron is falling has little to do with what TD Cowen says, and more to do with the fact that Micron rival Samsung is preparing to begin “large-scale production of the next generation of high-bandwidth memory chips as soon as this month.”
If Samsung increases HBM DRAM production, the worry is, this will increase supply, and short-circuit the DRAM price increases that TD is counting on to boost Micron’s profits and drive its stock price higher.
That’s the real reason Micron is going down today: the risk the cyclical semiconductor industry will do what it always does, and that today’s boom will become tomorrow’s bust.
Before you buy stock in Micron Technology, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $443,299!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,136,601!*
Now, it’s worth noting Stock Advisor’s total average return is 914% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of February 9, 2026.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.
—
Blog powered by G6
Disclaimer! A guest author has made this post. G6 has not checked the post. its content and attachments and under no circumstances will G6 be held responsible or liable in any way for any claims, damages, losses, expenses, costs or liabilities whatsoever (including, without limitation, any direct or indirect damages for loss of profits, business interruption or loss of information) resulting or arising directly or indirectly from your use of or inability to use this website or any websites linked to it, or from your reliance on the information and material on this website, even if the G6 has been advised of the possibility of such damages in advance.
For any inquiries, please contact [email protected]
