Micron Technology delivered one of the market’s most dramatic turnarounds in 2025, with its share value rising by 228% during the year. The company’s fiscal 2026 first-quarter results, covering the three months ended November 27, underscored this momentum: revenue soared 57% year over year to $13.6 billion, while non-GAAP operating margin expanded by 7.5 percentage points to 35%. Adjusted earnings per share jumped 167% to $4.78, reflecting robust pricing power in a tight memory-chip market.

Management projects revenue for the current quarter to increase by 132% year over year to $18.7 billion, and non-GAAP earnings per share to climb 440% to $8.42. To support that growth, Micron has raised its fiscal 2026 capital expenditure guidance to $20 billion—up from an initial forecast of $18 billion and well above the $13.8 billion spent in the prior year. This investment is targeted at expanding production capacity for both DRAM and NAND products to address ongoing supply shortages driven by accelerated AI adoption.

The surge in AI workloads deployed in data centers has created a severe memory shortage, with server-memory prices up sharply and smartphone and PC memory following suit. Industry data indicate that supply meets only 50% to two-thirds of key customer demand. In response, major producers have instituted significant price increases—Samsung, for example, has lifted memory prices by 60%—while market research projects that server-memory costs could double by the end of 2026. Micron’s CEO has reiterated that even with increased capital spending, the company will remain supply-constrained through the medium term.

Consensus estimates anticipate full-year non-GAAP earnings of $31.88 per share for fiscal 2026, implying an additional $27.10 of EPS over the next three quarters. If Micron achieves $9.56 per share in the fiscal 2027 first quarter and maintains solid growth thereafter, total earnings could reach $36.66 for the subsequent four quarters. Applying a 25-times forward multiple to that figure suggests potential upside exceeding 200%, underscoring the stock’s appeal at current valuation levels and making it a compelling buy thesis for growth-oriented investors.