Micron Technology Inc. (NASDAQ:MU) and Broadcom Inc. (NASDAQ:AVGO) remain two of Wall Street’s favorite ways to play the AI build‑out, with consensus targets implying mid‑double‑digit upside for Micron and even steeper gains for Broadcom into 2027.
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Street Upside into 2027
Analysts see further upside for Micron shares over the next year or so, supported by a clustered band of price targets in the low‑ to mid‑$400s versus a stock that has already rerated sharply on the AI memory story.
That may look modest, but for a name that has more than doubled off the cycle trough, it reflects growing conviction that current earnings power is sustainable rather than purely cyclical.
With an average price target of $508.33 between the three most recent ratings over the past week, there’s an implied 13.86% upside for Micron.
In its most recent quarterly report, Broadcom’s custom AI accelerators showed remarkable growth of 140% year-over-year, and networking revenue rose 60% year-over-year, constituting approximately one-third of total AI revenue, indicating a strong demand shift towards AI capabilities.
With an average price target of $481.67 from the three most recent ratings in March, there’s an implied 47.28% upside for Broadcom.
AI Demand as the Core Thesis
For Micron, the bullish call rests on its unique position as the only U.S. supplier of high‑bandwidth memory (HBM) and on the company’s disclosure that HBM capacity is effectively sold out through at least 2026, with orders already booked into 2027.
That demand backdrop underpins forecasts for rapid revenue and EPS growth as pricing for DRAM and NAND tightens and hyperscalers lock in multi‑year contracts to secure supply.
Several firms have responded by repeatedly lifting price targets on Micron shares—some to the $400–$470 range—while maintaining Buy or Overweight ratings.
Broadcom’s story is similarly anchored in AI, but with a heavier tilt toward custom accelerators, switching silicon and networking gear that sit at the heart of next‑gen data centers.
Management sees AI chip sales potentially exceeding $100 billion annually in the coming years, reframing Broadcom as a structural AI compounder rather than a traditional cyclical chip supplier.
Consensus models bake in high‑20s revenue growth, elevated operating margins and a premium earnings multiple, which together support those high‑40s percentage upside scenarios for the stock by 2027.
Why Analysts Like Both Stocks
While both stocks have already delivered outsized gains, analysts argue that the AI investment cycle is still in its early innings, with years of capex ahead from cloud, enterprise and telecom customers.
Micron offers pure‑play leverage to AI memory pricing, whereas Broadcom combines AI infrastructure exposure with recurring software cash flows, giving investors two differentiated but complementary ways to stay long the AI theme into 2027.
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