Micron Stock Forecast: Surging Cloud Computing And The Pandemic Will Keep Boosting Micron’s Stock

motek 1The Micron stock forecast was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.


  • My May 13 Micron stock forecast earns a buy recommendation as MU stock has shot up from $43.53 to $51.59. 
  • I still rate MU as a buy, and I reiterate my $65 1-year price target for it. There’s still 5 months left that could compel investors to again be more optimistic on Micron.
  • The worsening COVID-19 in America, India, and other parts of the world convinced me that the new normal of work-from-home, learn-from-home is a big tailwind for MU.
  • Micron reported Q3 outstanding numbers last May. I expect it to do the same for Q4. No thanks to COVID-19, I expect MU’s Q4 revenue to reach as high as $6.3 billion.
  • Storage and RAM products for the data center market are obviously higher-priced/higher-margin tailwinds for Micron.

Micron’s Pandemic Boost

The growing number of COVID-19 cases in the world is terrible. However, cloud computing-involved companies like Micron (MU) are obviously getting a strong boost from the world’s inability to resolve this pandemic. MU’s July 27 closing price of $51.59 is now 18.51% higher than what it was when I made my MU stock price bullish forecast. Since MU has appreciated less than 20%, we should not take our profits immediately. Let us be patient and hold on to our MU position (or buy more shares).

Micron Stock Forecast
(Source: Seeking Alpha Premium)

As per the chart above, the 6-month price return of MU is still -13.40%. It means Micron is not yet fully appreciated as a cloud computing beneficiary of this COVID-19 pandemic. Investors should realize that Micron supplies DRAM and flash storage to server farms and data centers around the world. Micron’s data center business is actually more important than how many DRAM and flash storage it sells to the PC and mobile markets. Micron’s stock will likely fly higher if only management will dare report a separate business segment for its Cloud Server/Enterprise sales. As of May 2020, Micron is still lumping its enterprise and consumer DRAM sales together

(Source: Business Quant)

Micron Will Fly High Like Nvidia If It Can Show Specific Data Center Revenue

The CNBU (Compute and Networking Segment) lumps Micron’s DRAM sales for the regular PC market and the data center industry. This is why it is hard for investors to really appreciate the importance of Micron in the $199.01 billion global cloud computing market. We are learned investors we should never forget that Micron’s DRAM and NAND products are essential to the fast-growing global cloud computing industry. 

(Source: Fortune Business Insights)

Micron’s GDDR6 DRAM products are helping Nvidia dominate the gaming and data center GPU market. The reason why Nvidia has space-high valuation ratios right now is because Nvidia dared to report a separate or distinct quarterly revenue figures for its Data Center segment. I hope that Micron’s management would heed my advice. MU’s price will fly higher if there’s a separate business segment for Micron’s data center-related sales.

Investors want transparency on the companies they want to invest in. Nvidia is super highly valued compared to Micron because the former is not afraid of reporting just how much it is making from data center-related sales. We should therefore go long on MU while it still trades below 22x Forward GAAP P/E. Micron’s stock could soar above $65 if it can show a 20% year-over-year in its data center business. The data center success of Nvidia is why it has an EV/Sales valuation of 21.03 while MU only has 2.77x.

Micron Stock Forecast
(Source: Seeking Alpha Premium)

Micron’s Cloud Computing

DRAM and NAND storage orders from data centers and GPU vendors like Nvidia can propel Micron to new highs. Cloud computing servers/instances need the high-speed RAM and NAND flash storage products of Micron. Crucial is Micron’s top brand for gaming and server RAM and SSD storage products.

(Source: Crucial)

The more companies that are forced to let their employees work-from-home, the greater the need there is for server RAM products. Like it is in PCs and smartphones, faster and larger amount of RAM are very important to servers. Buying more RAM is actually cheaper to do for server/data center operators than buying more x86 processors. The more RAM that a data center server instance has, the greater workload it can process.


If the best and the brightest minds of planet cannot find a solution to the COVID-19 solutions within the next 12 months, Micron would like hit $65. Yes, sir. I’m still holding on to my 1-year price target of $65 for Micron’s stock. Companies to buy/rent more server instances to support their work-from-home system are going to inspire cloud computing giants Amazon (AMZN), Microsoft (MSFT), Google (GOOG), Alibaba (BABA), and IBM (IBM) to buy more DRAM and SSD storage products from Micron.

(Source: Micron)

MU is a buy because it is now letting ARM-based server builders integrate its NVMe SSD and DDR6 DRAM modules. ARM-based server configurations still have a long way to go before it can disrupt the x86 server dominance of Intel. However, it is always great to know that Micron is not reliant on x86 servers for its data center business.

Cloud computing servers will also be tasked by a greater demand for online education. Most countries like the Philippines are not allowing regular school rooms to operate again. Filipino K-12 and college students will have to bear with online-only/distance learning for school year 2020-2021. The point is that server operators around the world will have to buy more DRAM, processors, and flash storage to keep up with the pandemic-induced greater need for cloud computing. 

My reiterated buy recommendation for Micron’s stock is again thanks to its bullish one-year trend forecast from I Know First. Take note that the predictive AI of I Know First has a very high 0.82 predictability score for the 1-year market trend forecast for MU. We should therefore raise our bets on MU. 

Micron Stock Forecast

Past I Know First Success with Micron Stock Forecast

I Know First was successful with Micron stock forecast in the past. On June 20, 2019 the I Know First algorithm issued a bullish one year Micron stock forecast and the algorithm successfully forecasted the movement of the MU stock. Since this forecast, MU shares rose by 50.88% in line with the I Know First algorithm’s forecast. See chart below.

Micron Stock Forecast

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