Since September 2025, Micron Technology shares have climbed 165%, propelled by surging demand for high-bandwidth memory (HBM) chips used in data centers powering artificial intelligence workloads. Over the past three months alone, the stock jumped 93%. Industry data show a memory‐chip supply shortage has tightened further, benefitting Micron and its peers; Samsung and SK Hynix HBM output remains constrained, while the total addressable market for HBM is now projected to reach $100 billion by 2028, with a compound annual growth rate of 40%.

In its December earnings report, Micron guided to fiscal second-quarter revenue of $18.7 billion, outperforming the consensus forecast of $14.3 billion by 31%. At the midpoint of its earnings-per-share outlook of $8.42, it more than doubled Wall Street’s expectation of $4.71. Management attributed the upside to strong pricing power during the ongoing memory shortage and newly contracted multiyear HBM supply agreements for 2026, which lock in volume and pricing commitments.

Despite the stock’s 165% surge since last September, Micron trades at a forward price-to-earnings ratio of 12, well below the technology‐sector average in the mid-20s. Analysts forecast a 50% annualized earnings growth rate over the next several years. With fully committed HBM capacity through calendar 2026 and plans to expand manufacturing in Virginia, Idaho and New York, the risk of an abrupt supply glut appears limited. The low multiple combined with robust demand dynamics suggests further upside for investors positioning for the continued AI boom.