One AI Stock I’d Watch Before Nvidia’s Earnings

Vandita Jadeja

Tue, August 25, 2026 at 5:15 PM GMT+3 4 min read

Quick Read

Micron (MU) holds a $955 price target, backed by 16 take-or-pay customer agreements and over $1 billion in HBM4 revenue already booked.
Micron outguns NVIDIA (NVDA) and Western Digital (WDC) on gross margin at 85% while trading at a forward P/E of just 6.
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Micron Technology (NASDAQ:MU) sits at the center of the AI memory trade. With NVIDIA (NASDAQ:NVDA) reporting later this week, the setup for its lead HBM supplier warrants careful pricing. Micron has run from the mid $120s a year ago to $910.43, and our proprietary model sees room to run into the earnings report.

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Our 24/7 Wall St. price target for Micron is $954.59 over the next 12 months, implying 4.85% upside from Monday's close. The model returns a hold at high confidence (90%), reflecting a stock near fair value after a violent revaluation but tethered to the strongest memory cycle on record.

MU Price Target — 24/7 Wall St.

24/7 Wall St. Price Target Summary

From $120 to $900 in a Year

Micron is up 674.9% over the past year and 219.19% year to date, but has cooled recently, falling 10.01% in the past week and 5.83% in the last session. It trades roughly 21% below its 52-week high of $1,254.81.

Fiscal Q3 revenue landed at $41.5 billion, up 346% year over year, with non-GAAP EPS of $25.11 beating consensus by 23.79%. Fiscal Q4 guidance calls for $50 billion in revenue and $31 in EPS at the midpoint. Retail sentiment on Reddit has cooled to neutral heading into Nvidia's print.

Why Bulls See a Breakout Ahead

Management's tone was aggressive. CEO Sanjay Mehrotra said "the memory industry has been structurally transformed by the proliferation of AI" and that "we see tightness persisting beyond 2027."

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The company has signed 16 Strategic Customer Agreements covering roughly 20% of DRAM volume and a third of NAND volume, with take-or-pay floors that CFO Mark Murphy said produce margins "significantly above prior peak margins."

HBM4 12-high shipments are ramping twice as fast as HBM3E, with over $1 billion in HBM4 revenue already booked. The bull case scenario points to $1,332.99, a 46.41% return. The Street's $1,515.11 consensus sits higher, with 9 Strong Buys, 31 Buys, and zero Sells.

MU Analyst Ratings — 24/7 Wall St.

Risks Worth Watching

Capex is exploding. Q3 burned $7.826 billion, with fiscal Q4 capex guided to roughly $10 billion and full-year FY26 spend near $27 billion. HBM4 concentration on a single lead customer amplifies Nvidia risk. A soft Nvidia guide could compress memory multiples fast.

Micron's average one-week post-earnings change is -3.44% despite 8 beats and 0 misses. Bulls counter that the $100 billion minimum SCA revenue backlog and $18 billion in incoming cash deposits materially blunt cyclicality. Our bear case flags $699.01, or a 23.22% drawdown.

How Micron Compares to NVIDIA and Western Digital

NVIDIA is the demand engine. It trades at a P/E of 43 with Q1 FY27 revenue up 85.2% to $81.61 billion. Micron's 6 forward multiple looks strikingly cheap against NVIDIA given similar exposure to AI infrastructure spend (we profiled seven non-chipmaker suppliers powering that same buildout in a free report here: 7 Stocks Powering the AI Boom).

Western Digital (NASDAQ:WDC), the pure-play HDD peer riding the same AI storage tailwind, posted fiscal Q4 revenue of $3.75 billion, up 43.8% year over year, with non-GAAP gross margins at 54.4%. Micron's 84.9% non-GAAP gross margin dwarfs both. That combination of higher margins and lower forward multiple makes our $954.59 target look conservative relative to peers.

Micron Price Prediction 2026-2030

MU Price Scenario — 24/7 Wall St.

The 24/7 Wall St. price target is $954.59 with a hold rating at 90% confidence. The SCA backlog converts memory from a boom-bust asset into contracted cash flow.

The setup improves if Nvidia reiterates gigawatt-scale AI capex guidance and Micron re-tests $1,000. The setup weakens if HBM4 pricing shows softness in the earnings report.

These projections assume Micron continues executing SCAs on schedule and HBM4E reaches volume production in calendar 2027. Significant upside or downside could result from a shift in AI capex or a change in the HBM lead-customer relationship.