Why Micron Stock Popped Again Today

By Rich Smith – Apr 27, 2026 at 10:38AM ESTKey PointsMelius Research initiated coverage on Micron with a buy rating and a $700 price target.Semiconductor stocks are usually cyclical, but Melius thinks this time is different.Micron (MU +6.87%) stock closed last week at an all-time high near $497 a share -- and it's starting this week off right, too. Shares of the computer memory-maker jumped 4.8% through 10:25 a.m. Monday after Melius Research rated Micron "buy" with a $700 price target. Melius thinks Micron will gain another 41% over the next 12 months. Image source: Getty Images. Why Melius loves Micron Micron makes computer memory, which works in tandem with artificial intelligence chips to power the AI revolution. Melius argues in a note covered on TheFly.com that this revolution is still in early innings -- and may last "through the end of the decade." As Melius explains, demand for high-bandwidth memory and the high profit margins Micron is earning are "unusual." Investors are having a hard time believing demand will last long, or profit margins remain high long-term -- worrying the semiconductor market will do what it always does, and quickly turn from an up-cycle into a down-cycle. Once investors realize this time is different, however, they'll pay higher multiples to earnings for Micron -- and Micron stock will move higher. ExpandNASDAQ: MUMicron TechnologyToday's Change(6.87%) $34.10Current Price$530.82Key Data PointsMarket Cap$560BDay's Range$510.04 - $531.2452wk Range$73.50 - $531.24Volume743KAvg Vol41MGross Margin58.54%Dividend Yield0.10% What's next for Micron stock? But what if Melius is wrong? What if the semiconductor industry remains as cyclical as it always has been? What if this time is not different? In contrast to rival Sandisk (SNDK +7.52%), which only recently turned profitable, Micron earned positive profits in four of the past five years. Even better, last year's $7.59 profit could grow 660% this year if analyst estimates are correct -- then hit $98 in 2027 before starting to slide. By 2030, Micron could still be earning more than $27 a share. For a stock that costs only $517 today, that's a 19 P/E ratio at the end of the cycle. Sounds cheap to me!Read NextApr 27, 2026 •By David Jagielski, CPAThis Forecast Could Spell Trouble for Micron Technology StockApr 26, 2026 •By Keithen Drury3 Under-the-Radar Chip Stocks With Massive UpsideApr 25, 2026 •By Anthony Di PizioIs Micron Technology Stock About to Join the Exclusive $1 Trillion Club?Apr 24, 2026 •By Rich SmithWhy Micron Stock Popped TodayApr 24, 2026 •By James HiresIs the Memory Supercycle Already Priced In? What the Data Says About Micron Stock.Apr 23, 2026 •By Harsh ChauhanWill Micron Technology Stock Split in 2026?About 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$530.64(+6.83%)+$33.92SandiskNASDAQ: SNDK$1,055.62(+6.64%)+$65.72*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.