One foundational artificial intelligence (AI) stock could surpass a $3 trillion valuation if Wall Street’s loftiest price target proves accurate.
One foundational artificial intelligence (AI) stock could surpass a $3 trillion valuation if Wall Street’s loftiest price target proves accurate.
Investors have been waiting decades for Wall Street's next "internet" moment. The evolution of artificial intelligence (AI) has answered the call. Empowering software and systems with the tools needed to make autonomous decisions is a multitrillion-dollar global opportunity -- and this fact isn't lost on Wall Street professionals.
While most analysts have a positive long-term view on the AI infrastructure build-out, some Wall Street professionals are forecasting truly game-changing returns for select AI pioneers. According to select Wall Street analysts, Micron Technology (MU +2.96%) and SoundHound AI (SOUN -1.48%) offer investors up to 324% upside from their Oct. 16 close.
Micron Technology: Implied upside of 241%
Don't be fooled by memory and storage solutions titan Micron Technology entering the trillion-dollar club this year. According to D.A. Davidson's Gil Luria, Micron could realistically blow past the $3 trillion valuation plateau.
Recently, Luria upped his firm's 12-month price target for Micron to a Street-high $3,000 per share, representing upside of 241%! Luria's outsize optimism stems from Micron's long runway of opportunity as a supplier of high-bandwidth memory (HBM). HBM is stacked with graphics processing units in AI-accelerated data centers, enabling rapid data transfers.
MICRON $MU Q4’26 EARNINGS HIGHLIGHTS 🔹 Revenue: $54.23B (Est. $51.07B) 🟢; +379% YoY 🔹 Adj. EPS: $33.42 (Est. $31.61) 🟢 🔹 Adj. Gross Margin: 87.0% (Est. 86.1%) 🟢 Q1 FY27 Guide: 🔹 Revenue: $61.5B ± $1.5B (Est. $57.02B) 🟢 🔹 Adj. EPS: $38.15 ± $1.00 (Est. $35.40) 🟢 🔹 Adj. Gross Margin: ~86.25% (Est. 86.4%) 🟡 CapEx & Cash Flow: 🔹 Operating Cash Flow: $43.97B (Est. $34.47B) 🟢 Business Unit Revenue: 🔹 Cloud Memory: $16.28B 🔹 Core Data Center: $18.00B 🔹 Mobile and Client: $13.11B 🔹 Automotive and Embedded: $6.82B Other Q4 Metrics: 🔹 Adj. Oper Income: $44.64B (Est. $42.41B) 🟢 🔹 Adj. Net Income: $38.40B (Est. $36.31B) 🟢 🔹 GAAP EPS: $32.87 Key Updates: 🔸 Quarterly dividend of $0.15 per share Comments: 🔸 “Micron delivered record fiscal 2026 results, and we expect an even stronger fiscal 2027”
In an interview on CNBC's Squawk on the Street, Luria compared the premium investors have willingly paid for central processing unit makers, such as Advanced Micro Devices (AMD +1.76%), to Micron's estimated price-to-earnings ratio for fiscal 2027 of just 5. Luria believes Micron has a three-to-five-year runway of exceptional growth prospects fueled by its HBM products.
While Micron has secured at least $100 billion in strategic customer agreements through 2030, history shows that boom cycles for memory companies are rarely sustainable for an extended period. Though ongoing HBM supply shortages may buoy Micron's pricing power and its stratospheric margins, the potential for increasing competition and/or an AI bubble-bursting event can't be overlooked.
SoundHound AI: Implied upside of 324%
Averytin News Financial update.