Investor Ross Gerber of the investment firm Gerber Kawasaki on Monday laid out a bullish valuation case for Micron Technology Inc (NASDAQ:MU) using a “simple” math price-to-earnings (P/E) multiple calculation.
Micron’s Huge Potential Growth
In a post on X, Gerber said that strong earnings growth could push MU shares sharply higher over the next two years.
He explained this in a simple math calculation by saying that “Expectations are for $57 in eps for 2026 and over $100 in eps for 2027. Apply market multiple to $57, let’s say 20 times. You get… $1140 per share. “
Gerber’s calculation of $1140 per share is based on the P/E multiple of 20 times multiplied by the projected 2026 EPS of $57. This price represents a substantial 43% potential upside to the price of $795.33 on May 11.
AI Demand Fuels Micron’s Remarkable Surge
Micron has seen a remarkable surge this year, climbing about 179% since the start of the year and 86.5% in just a month. The stock just wrapped up its best weekly performance since December 2008, with shares up roughly 29% last week.
The latest rally has lifted Micron’s market capitalization near $900 billion, vaulting the Boise-based memory maker into the top 10 most valuable U.S. tech companies.
Micron’s fiscal second-quarter 2026 results showed a staggering revenue of $23.86 billion—nearly triple the $8.05 billion reported a year earlier.
Micron CEO Sanjay Mehrotra recently highlighted during a CNBC interview that the expansion of AI inference is increasing demand for tokens that require faster, higher-capacity memory.
CNBC’s Jim Cramer said that the company is benefiting from a long-term transformation in the memory and storage market driven by AI demand, rather than merely a temporary semiconductor cycle. Cramer added that Micron’s valuation appears attractive as investors increasingly gain confidence in the durability of AI-related demand trends.
‘Memflation’ Surge Ahead
The memory giant has begun shipping the 245TB Micron 6600 ION SSD, billed as the world’s highest-capacity commercially available solid-state drive. The move comes at the right time as the industry coins a new word for the moment: memflation.
Gartner projects global memory revenue will nearly triple from $216.3 billion in 2025 to $633.3 billion in 2026, climbing again to $748.1 billion in 2027.
Benzinga Edge Stock Rankings indicate that MU has a Momentum score in the 99th percentile. It maintains a strong price trend in the short, medium and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
Photo Courtesy: Sundry Photography on Shutterstock.com
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