Newton Brothers US Stocks Live Synchronization:
Bank of America directly sees MU at a $4,000 share price, corresponding to a $4 trillion market cap. 2026.8.17
Bank of America’s model predicts that Micron Technology’s MU gross margin will remain at 80% all the way until 2030, breaking the traditional memory cycle.
They forecast that by fiscal 2030, MU’s earnings per share will reach $236, with a CAGR as high as 34%, far above general market expectations.
They used the economic data actually reported by SNDK (SanDisk): 15% sales growth, gross margin of over 80%, and free-cash-flow profit margin of over 50%, and applied it to MU. All debates about the memory industry are centered on a single row in this table: gross margin. The market’s common expectation is the old cycle.
Gross margin is expected to hit a peak of 84.5% next year, then fall to 73.5% by fiscal 2029, while EPS would actually drop after a peak of $169, falling to $136 in fiscal 2030.
Bank of America’s forecast shows gross margin staying at 80% and EPS continuing to rise: fiscal 2028 $169, fiscal 2029 $200, fiscal 2030 $236—five consecutive years of 34% compound annual growth.
SNDK raised its gross margin from 51% to 84.6% within three quarters, and it is expected to be even higher. The gross-margin collapse that all the bears have predicted has yet to show up.
Even under general market expectations, MU would still return a large amount of capital, with an annualized return of 49.8% for fiscal 2028 and 69.1% for fiscal 2029 (the stock buyback restrictions expire on December 9 this year).
EPS of $236, a P/E of 20x, implies a share price of $4,700. At a 15x P/E, the price would be $3,500. Today MU’s stock price is under $1,000—so, rounding in the middle, $4,000.
Bank of America directly sees MU at a $4,000 share price, corresponding to a $4 trillion market cap. 2026.8.17
Bank of America’s model predicts that Micron Technology’s MU gross margin will remain at 80% all the way until 2030, breaking the traditional memory cycle.
They forecast that by fiscal 2030, MU’s earnings per share will reach $236, with a CAGR as high as 34%, far above general market expectations.
They used the economic data actually reported by SNDK (SanDisk): 15% sales growth, gross margin of over 80%, and free-cash-flow profit margin of over 50%, and applied it to MU. All debates about the memory industry are centered on a single row in this table: gross margin. The market’s common expectation is the old cycle.
Gross margin is expected to hit a peak of 84.5% next year, then fall to 73.5% by fiscal 2029, while EPS would actually drop after a peak of $169, falling to $136 in fiscal 2030.
Bank of America’s forecast shows gross margin staying at 80% and EPS continuing to rise: fiscal 2028 $169, fiscal 2029 $200, fiscal 2030 $236—five consecutive years of 34% compound annual growth.
SNDK raised its gross margin from 51% to 84.6% within three quarters, and it is expected to be even higher. The gross-margin collapse that all the bears have predicted has yet to show up.
Even under general market expectations, MU would still return a large amount of capital, with an annualized return of 49.8% for fiscal 2028 and 69.1% for fiscal 2029 (the stock buyback restrictions expire on December 9 this year).
EPS of $236, a P/E of 20x, implies a share price of $4,700. At a 15x P/E, the price would be $3,500. Today MU’s stock price is under $1,000—so, rounding in the middle, $4,000.