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What TD Cowen’s $60 EPS Call Means for Micron Technology (MU)

Micron Technology Inc. (NASDAQ:MU) is among the 15 Undervalued Momentum Stocks That Are Taking Off.

According to a February 9 report, TD Cowen raised its long-term earnings outlook for Micron Technology Inc. (NASDAQ:MU). The firm now expects that MU’s EPS may reach as much as $60 in 2026, above its prior bull-case assumption of $50. The revision reflects the firm’s view that structural supply capacity issues in the DRAM market are likely to persist for multiple years. This implies that the company may continue to witness stronger pricing and margin development, better than previously anticipated.

TD Cowen outlines a “gradual re-rating path” toward a 12x multiple applied to a normalized earnings base of roughly $50 per share, which underpins its longer-term upside thesis. According to the firm’s estimates, better-than-expected earnings growth could lead to a stock price of $600 over time.

Micron Technology Inc. (NASDAQ:MU) received a further boost when its management strongly backed its HBM4 product at Wolfe Research’s Autos/Semis conference on February 11. Notably, the leadership said they expect to start shipping the product in the current quarter rather than next, as previously guided. They also mentioned that demand is “significantly higher” than its supply capacity, thus underpinning demand trends beyond 2026.

The performance of Micron Technology Inc. (NASDAQ:MU) shares has been stunning, with 240% returns in 2025 and 50% rally so far in 2026. The stock currently trades 6% below its 52-week high of $455.5.

Micron Technology Inc. (NASDAQ:MU) designs, develops, manufactures, and markets memory and storage products, including dynamic random-access memory (DRAM), flash memory (NAND), solid-state drives (SSDs), and High Bandwidth Memory (HBM) globally.

While we acknowledge the risk and potential of MU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MU and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT:  12 Best Software Infrastructure Stocks to Buy According to Hedge Funds and Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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