Since last September’s bullish call, Micron Technology shares have climbed 165%, propelled by explosive adoption of artificial-intelligence applications that require high-bandwidth memory (HBM). Over the past three months alone, the stock nearly doubled, up 93%, as data-center operators raced to secure scarce HBM modules. Industry estimates now project HBM’s total addressable market will hit $100 billion by 2028, driven by a compound annual growth rate of 40%—a milestone Micron now expects two years sooner than previously forecast.

In its December earnings report, Micron issued fiscal second-quarter guidance for revenue of $18.7 billion—well above the consensus of $14.3 billion—and EPS at $8.42, nearly double the $4.71 analysts had anticipated. Management cited continued pricing power from persistent supply constraints in DRAM and HBM, which has supported margin expansion even as chipmakers scramble to expand capacity. The company has already locked in its entire 2026 HBM output under multiyear contracts, ensuring revenue visibility through next year.

Despite a more than 260% rally over the past year, Micron trades at a forward P/E of roughly 12, significantly below the semiconductor sector average in the mid-20s. Analysts forecast earnings growth near 50% annually through 2028, outpacing many peers. With a supply bottleneck persisting and capital spending plans exceeding $20 billion this fiscal year, Micron’s revenue and margin trajectory appears sustainable. The combination of industry leadership in advanced memory and a conservative valuation underpins a positive investment thesis for 2026 and beyond.