On Wednesday, Micron announced the completion of a $1.8 billion acquisition of a chip fabrication facility in Taiwan, securing an additional 200,000 wafer starts per month by 2028. This move follows an initial letter of intent signed in January and is expected to augment Micron’s global production footprint ahead of projected demand growth in high-bandwidth memory (HBM) for AI applications. Integration plans call for equipment installation and yield optimization, with incremental output slated to commence in the second half of fiscal 2027.

In the first quarter of fiscal 2026, Micron delivered 56% year-over-year revenue growth and expanded gross margin from 38.5% to 56.2%. The Cloud Memory business unit drove margin improvements to 66%, with revenues nearly doubling to $5.28 billion. The Automotive and Embedded division achieved a record $1.7 billion in sales, representing 13% of total revenue. Management highlighted that strong pricing power, due to persistent supply bottlenecks and elevated average selling prices, underpinned these results.

Following Micron’s earnings release, at least five major Wall Street firms increased their 12-month price targets by an average of 20%. Analysts cited an ongoing memory supercycle driven by data-center and AI workloads, forecasting industry DRAM shortages to persist through 2026. One leading firm projected Micron’s revenue to exceed $25 billion in fiscal 2026, with gross margins reaching 60%, while another sees share gains in HBM and DDR5 contributing over 30% of total sales by 2027.

Despite a 250% stock rally over the past 18 months, Micron’s forward price-to-earnings ratio stands just above 11x, well below peer group averages. Consensus EPS estimates call for $33 in fiscal 2026 and $41.50 in fiscal 2027, supporting a $430 fair‐value target. Analysts expect annual earnings growth north of 40% through fiscal 2027, driven by continued strength in AI-related memory products and favorable supply–demand dynamics.