Micron Technology shares have climbed almost sixfold in the last year. Even so, KeyBanc analysts believe the memory chip stock could rise as earnings season approaches. They highlight strong, still-growing demand. They also note that the stock is still unusually cheap compared to its growth.

Micron fell 1.7% to $413.54 in premarket trading on Monday. However, KeyBanc sees this dip as a good buying opportunity. The analyst rates Micron as Overweight with a $600 price target, which suggests about 40% upside from here. They also call Micron one of the best risk-reward picks in the semiconductor sector ahead of earnings.

Micron’s valuation stands out. After a strong year, it is the cheapest S&P 500 stock on a forward price-to-earnings basis. The market’s usual caution comes from memory chip cyclicality. Analysts argue that this caution overlooks sustained changes in sector demand.

This shift comes from the growth of artificial intelligence infrastructure. Demand for high-bandwidth memory chips should exceed supply until at least the middle of next year. More manufacturing capacity is expected then. Prices for these chips could rise by 30% to 50% each quarter through the second quarter of 2026. Major new supply is not expected until at least 2027. This should help current producers keep strong pricing and margins.

KeyBanc expects Micron to report third-quarter revenue of $35.1 billion and $20.54 earnings per share in late June, both above the consensus of $33.8 billion and $19.26. With a low valuation, high expected earnings, and limited supply, Micron stands out in the AI hardware supply chain ahead of its next earnings report.