Micron (NASDAQ:MU) stock has staged a strong bull market this year, pushing its market capitalization to over $1 trillion. It has soared by 903% in the last 12 months, helped by the soaring demand for DRAM and NAND memory chips. Still, some key Wall Street analysts believe that the MU stock has more upside ahead.

Susquehanna, UBS, and DA Davidson Forecast More Micron Stock Surge

Some Wall Street analysts believe that Micron stock has more upside despite the recent gains. Mehdi Hosseini, a top analyst at Susquehanna boosted his estimate from $600 to $1,750, suggesting a 80% from the current level. Such a move will push its market cap to over $1.8 trillion. 

Timothy Arcuri, an analyst from UBS, boosted his $535 to $1,625, a 66% upside from the current level. Mizuho's Vijay Rakesh boosted its outlook to $800, while DA Davidson hiked the target to $1,000. 

The general view is that Micron's strong revenue growth helps to support its $1 trillion valuation. Its most recent earnings showed that its revenue surged by 75% QoQ in the second fiscal quarter to $23 billion. It rose by 196% from the same period last year, helped by more shipments and higher product prices. 

Most of this revenue is being driven by its DRAM business, which made over $18.8 billion in the second quarter. The management and analysts believe that the revenue growth will continue. According to Benzinga Pro, the average estimate is that its annual revenue will jump 195% to $110 billion, followed by 58% to $175 billion

Despite these metrics, the company trades at a bargain. It trades at just 10 times estimated earnings, the lowest metric in the Philadelphia Stock Exchange Semiconductor Index. It is also one of the lowest multiple in the blue-chip S&P 500 Index. According to FactSet (NYSE:FDS), the index has a forward PE ratio of 21.

MU Stock is Getting Overbought

Micron stock chart | Source: TradingView

The daily chart shows that the Micron stock has continued soaring this year, mirroring the performance of other top companies like SK Hynix, Sandisk (NASDAQ:SNDK), and Seagate Technology (NASDAQ:STX). 

It recently crossed the important resistance level at $818, its highest point on May 13 this year, invalidating the double-top pattern. The challenge, however, the stock has become highly overbought as the Relative Strength Index has moved to the overbought level of 78. 

It also remains much higher than the historical averages, with the 100-day MA being at $505. Therefore, these indicators mean that the stock may have a brief pullback and then resume the uptrend. If this happens, it may drop and retest the support level at $818. 

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