Micron stock bullish sentiment is still very much alive and it keeps circling back to one thing: supply, or really, the lack of it. A Micron HBM shortage and a DRAM supply shortage are pinching the market at the same time, and that combination keeps pushing the Micron stock forecast higher on Wall Street, even after one firm trimmed its number this week. The average Micron stock price target also sits well above where shares trade at the time of writing, and that alone tells you where sentiment leans. That is basically the whole Micron stock bullish story in one line, and it is worth unpacking piece by piece.
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Micron Stock Forecast: HBM Shortage And DRAM Supply Drive Upside
Mizuho Trims Its Price Target, Cites Multiple Compression
Mizuho’s Vijay Rakesh brought his target down to $1,300 from $1,375 on August 25, 2026, and he kept his Buy rating anyway. The reasoning had more to do with the wider market than with Micron itself, since he pointed to multiple compression rather than any actual drop in demand. An analyst trimming a number like that would normally spook a stock, and it is exactly the kind of headline that would test a Micron stock bullish thesis, but this one barely made shares wobble.
Vijay Rakesh, Mizuho analyst, had this to say:
“some multiple compression from concerns around de-specing on future GPU/ASICs”
That, in a way, is one more small proof point for the Micron stock bullish crowd, even during a week that opened with a trim rather than a raise.
HBM Sold Out, Analysts Keep Raising Targets
Needham moved its target up to $300 from $200, and the note behind it pointed out that Micron’s HBM3E and HBM4 supply for 2026 is already sold out. Spot DRAM prices also jumped 162% quarter-over-quarter, which is not a small number by any measure, and it is one detail that keeps propping up the Micron stock forecast even as other headlines shift around it. UBS pushed its own target to $245, and Citi went to $240, both leaning on the same DRAM supply shortage story. Wolfe, Susquehanna, and Wedbush all raised targets that same week too, and that is one more reason the Micron stock bullish argument keeps holding up despite the shortage headlines.
Goldman Sachs, for its part, projects a 5.9% DRAM undersupply by 2027 as AI server demand keeps eating into capacity. The Micron HBM shortage has gotten bad enough that even the company’s own leadership has started using blunt language for it.
Manish Bhatia, Micron’s Executive Vice President of Operations, had this to say about the situation:
“unprecedented”
The Rally, The Mechanism, And Where Targets Stand Now
Shares are up around 247% over the past year, and more than 10.5% of that came in a single day back on January 2, right after Bernstein raised its target to $330 from $270. An easy thing to miss here is that the fundamentals have mostly kept pace. Q1 2026 net revenue landed at $13.6 billion, up 21% quarter-over-quarter, and gross margin stretched to roughly 57% as HBM sales scaled up.
Micron guided non-GAAP EPS to climb about 440% year-over-year this quarter, and that follows 167% growth the quarter before that one. Still, one thing worth flagging is the average Micron stock price target across 40 analysts, which sits at $290.92, and that gap is really the whole debate around the Micron stock bullish case right now.
Valuation Now Catching Up With The Rally
The market has already priced in a lot of the shortage-driven upside, even if some analysts still see room to climb. BofA raised its own number too but also flagged startup cost headwinds that will likely stick around into calendar for 2026 and longer.
The chain behind all this is not that complicated once you lay it out plainly. A sold-out Micron HBM shortage, paired with a tight DRAM supply shortage, hands the company real pricing power, and that pricing power expands margins. Wider margins then keep producing earnings beats, and those beats trigger the next round of upgrades. Micron is rushing new clean rooms into service right now just to add physical capacity, and multi-year contracts locking in fixed pricing through 2030 aim to protect revenue if the shortage eases earlier than expected. Wall Street keeps revisiting its Micron stock price target and its broader Micron stock forecast every time a new note drops, and how smoothly the buildout goes probably decides how much longer this Micron stock bullish run has left in it.