In its latest quarter, Micron reported a 57% year-over-year increase in revenue and a 167% rise in non-GAAP earnings, underscoring the strength of demand for its memory products. Management is guiding for revenue to jump 132% year over year to $18.7 billion in the current quarter, with adjusted earnings expected to increase more than fivefold. Consensus forecasts project full-year earnings of $32.14 per share, implying nearly a fourfold increase from the prior fiscal year. Such robust growth underlines Micron’s ability to capitalize on surging memory requirements driven by artificial intelligence infrastructure build-outs.

Despite a 250% stock gain over the past year, Micron trades at a trailing P/E of 27 and a forward P/E of just 9, markedly below the tech-heavy Nasdaq-100’s average of 26. Morgan Stanley analysts highlight a 48% compound annual earnings growth rate over the next three years for Micron, supporting their conviction that the stock remains undervalued. If Micron’s forward multiple were to re-rate closer to its large-cap semiconductor peers, the shares could see substantial upside from current levels.

Global memory supply growth is set to remain constrained at 16–17% in 2026, according to IDC, well below the historical norm. At the same time, the high-bandwidth memory segment—critical for AI accelerators—is projected to expand at a 42% annualized rate through 2033. Micron has gained 10 percentage points of market share in HBM over the past year, positioning it to benefit from server memory prices that could double next year. With industry spending on AI data centers forecast to reach $1.2 trillion by 2030, Micron’s capacity discipline and exposure to both DRAM and NAND shortages should sustain margin expansion and revenue growth well into the next decade.