Why Micron Stock Popped Again Today

By Rich Smith – Jan 9, 2026 at 1:42PM ESTKey PointsMizuho analyst Vijay Rakesh just raised his price target on Micron.Micron generates a lot less cash than its earnings suggest.We’re bullish on these 10 stocks ›NASDAQ: MUMicron TechnologyMarket Cap$368BToday's Changeangle-down(4.43%) $14.48Current Price$341.50Price as of January 9, 2026 at 2:11 PM ETMicron shares sell for a tiny P/E ratio -- but a gigantic valuation on P/FCF.Micron (Nasdaq: MU) stock resumed marching higher Friday, gaining 4.1% through 1:25 p.m. ET after Mizuho analyst Vijay Rakesh issued a 2026 outlook for semiconductor stocks and raised his price target on Micron to $390 per share. Image source: Getty Images. Why Mizuho likes Micron Rakesh cites "attractive valuations" as propitious for semi stocks to continue gaining in 2026, although the analyst doesn't expect gains as large as the sector enjoyed in 2025. AI accelerators, wafer fab equipment, optical, and memory are three subsets of semiconductors Mizuho is most keen to own. Mizuho is less sanguine about the prospects for electric vehicles in particular, semiconductors for automobiles in general, or computers and handsets. ExpandNASDAQ: MUMicron TechnologyToday's Change(4.43%) $14.48Current Price$341.50Key Data PointsMarket Cap$368BDay's Range$326.25 - $342.5452wk Range$61.54 - $346.30Volume991KAvg Vol27MGross Margin45.56%Dividend Yield0.14% Is Micron stock a buy? Micron reported a 56% increase in sales in its most recent quarter, while earnings per share nearly tripled year over year. In the current quarter, Micron CEO Sanjay Mehrotra forecasts the company will book $18.7 billion in revenue and earn approximately $8.19. Analysts who follow the stock think this year could see Micron earn as much as $32.30 total -- and then grow another 23% in 2027.Advertisement Assuming they're right, that's a 10.5 current-year P/E ratio on a stock growing at 23%, which seems a pretty amazing valuation on Micron stock (and not coincidentally, a good reason for Mizuho to think the stock will "outperform" this year). If there's one caveat I'd make, it would be to point out that Micron's trailing free cash flow is only $4.7 billion -- much less than the $11.9 billion Micron reports for TTM "earnings." Valued on FCF, the stock sells for a multiple of 78x, which is much more expensive than the P/E. If you're looking for a bear case on Micron stock, I'd start there.Read NextJan 9, 2026 •By James HiresFrom Chips to Data Centers, AI Investors See the Next Breakout in This StockJan 9, 2026 •By Geoffrey SeilerWhat Are 3 Great Tech Stocks to Buy Right Now?Jan 8, 2026 •By Jeremy Bowman11 S&P 500 Stocks Doubled in 2025. This Is the Best Bet To Do It Again This YearJan 8, 2026 •By Harsh ChauhanMicron Technology Has Started 2026 With a Bang.

The Stock Could Still Triple This YearJan 6, 2026 •By Chris NeigerGot $5,000? 3 Tech Stocks to Buy and Hold for the Long TermJan 6, 2026 •By Emma NewberyStock Market Today, Jan. 6: Micron Technology Surges on AI Memory DemandAbout the AuthorRich Smith is a contributing Motley Fool defense and stock market analyst covering publicly traded and emerging companies in defense, space, aerospace, and other sectors. Prior to The Motley Fool, Rich practiced international corporate law for Clifford Chance in Russia, and for the Russian-Ukrainian Legal Group in Moscow, Kyiv, and Washington, D.C. He holds a bachelor’s degree in international relations from the College of William & Mary, a law degree from the University of Baltimore, and a language certification from the International Institute of Russian Language & Culture in Tver, Russian Federation. The Globe and Mail once featured him as “one of the best stock pickers since 2009.”TMFDittyX@RichSmithFoolStocks MentionedMicron TechnologyNASDAQ: MU$341.50 (+0.04%) $+14.48*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.Advertisement