SerpApi.Org
Micron Technology (MU) stock closed comfortably in the green on Tuesday after Bank of America Securities added the memory chips specialist to its “U.S. 1 List.” The firm’s senior analyst Vivek Arya maintains a “Buy” rating on MU, with a bullish $1,550 price target signaling potential upside of about 55% from current levels.
Micron stock’s addition to BofA’s highest conviction buy calls is significant given it is already up more than 200% year-to-date.
What Makes Micron Stock Worth Owning in 2026?
Bank of America didn’t offer more color because it has included MU shares in its U.S. 1 List today.
In its previous reports, however, the investment firm cited Micron’s long-term contracts with major hyperscalers for its constructive view. The company has signed 16 strategic customer agreements (SCAs) so far.
These agreements feature binding take-or-pay commitments alongside custom price floors through 2030, effectively locking in more than half of Micron’s revenue base.
More importantly, despite a meteoric year-to-date rally, MU shares are trading at a forward price-to-earnings (P/E) multiple of less than 12x, which makes it significantly less expensive to own than the other best-of-breed AI names, including Nvidia (NVDA).
MU Shares Are About to Break Above Their 20-Day MA
With AI-driven DRAM and NAND bit shipments expected to accelerate sharply in the years ahead, Micron’s pricing power and high-bandwidth memory leadership remain exceptionally strong.
In the current quarter, the Nasdaq-listed firm is expected to earn $31.17 on a per-share basis, which would represent a roughly 11x increase versus last year.
Micron shares remain attractive to own in the second half of 2026 also because the company’s free cash flow margin is projected to hit as much as 60%.
From a technical perspective, MU currently sits just under its 20-day moving average (MA), with a decisive break above the $998 level expected to accelerate bullish momentum in the near term.
How Wall Street Recommends Playing Micron Technology
Other Wall Street analysts also agree with Arya’s bullish view on MU stock for the next 12 months.
The consensus rating on Micron Technology sits at “Strong Buy” currently, with the mean price target of about $1,495 signaling potential for another 50% rally from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
・Barclays Just Upgraded CarMax Stock. Here's Why.
・Bank of America Is Feeling Bullish on Micron Stock. Here's Why
・The UFO ETF Is Crashing Back to Earth as SpaceX Stock Treads Water Below $135
