In the first quarter of fiscal 2026, which ended November 27, Micron Technology delivered revenue of $13.6 billion, marking a 57% year-over-year increase. Non-GAAP earnings per share jumped to $4.78 from $1.79 in the year-ago quarter, driven by higher average selling prices for high-bandwidth memory (HBM) and strong unit shipment growth. Gross margin expanded to 45.6%, up from 35.2% a year earlier, reflecting improved product mix and cost efficiencies. All four key segments—Cloud Memory, Core Data Center, Mobile & Client, and Automotive & Embedded—posted double-digit revenue growth, with the Core Data Center business leading at 65% year-over-year growth and a 48% operating margin.

Micron announced that it has finalized price and volume agreements for its entire calendar 2026 production of high-bandwidth memory. With contracts secured across its HBM3E and upcoming HBM4E lines, the company’s HBM capacity is fully committed, underscoring surging demand from major hyperscalers and AI cloud providers. Industry research firm TrendForce projects global HBM market revenue will climb from $35 billion in 2025 to $100 billion by 2028, and Micron’s sold-out status positions it to capture a leading share of this expanding market over the next three years.

Consensus estimates compiled by MarketBeat anticipate that Micron’s non-GAAP EPS will rise from $11.10 in fiscal 2025 to $32.14 in fiscal 2026, reflecting a 190% increase. Revenue is expected to more than double year-over-year, with guidance for the second quarter of fiscal 2026 ranging from $18.3 billion to $19.1 billion—implying at least 100% growth versus the prior year. These projections are supported by massive back-to-back memory content ramps in AI accelerators and data center servers, where Micron’s HBM solutions are becoming the performance bottleneck for compute providers.

Despite its rapid growth trajectory, Micron trades at less than 10 times forward earnings, compared with peer multiples of 35 to 75 for other leading chipmakers. The stock’s forward price-to-earnings ratio of 9.0 and a price-to-sales ratio of 2.4 stand in stark contrast to sector averages. With analysts issuing multiple price-target increases following the Q1 beat and strong guidance, and with institutional holdings exceeding 80% of shares outstanding, Micron presents a compelling risk/reward profile for investors seeking exposure to the next phase of the $15.7 trillion AI-driven semiconductor revolution.