Micron Technology trades at approximately 10 times forward earnings, significantly below the 30-plus multiple typical of large-cap tech peers. Wall Street analysts project revenue growth of 133% year-over-year in the upcoming quarter, followed by 100% growth for fiscal 2026, reflecting surging demand for high-bandwidth memory (HBM) chips used in AI accelerators. Despite this monster growth runway, investors remain cautious due to the cyclical nature of memory pricing and past episodes of excess fab capacity driving price declines.

During Q1, Micron’s chief business officer reported that the company is sold out of HBM through 2026, underscoring a severe supply shortfall. To address this, Micron agreed to acquire Powerchip’s P5 fab in Taiwan for US$1.8 billion, and is constructing two new Idaho fabrication facilities—one slated to begin output in mid-2027 and a second by late 2028—along with a New York plant targeting 2030 production. Nonetheless, these expansions come too late to relieve 2026 shortages, suggesting sustained pricing power for the remainder of the year.

In its fiscal Q1, Micron posted revenue of $13.64 billion, up 56.6% year-over-year, and non-GAAP earnings per share of $4.78, a 167% increase. Gross margin reached 45.5% in the quarter and is forecast to climb to an all-time high of 67% in Q2, driven by tight supply and elevated memory prices. Management’s guidance implies record profitability through fiscal 2026, positioning Micron’s earnings to potentially quadruple over the next several years as AI-driven memory demand continues to outstrip capacity.