Micron reported revenue of $13.64 billion in its first quarter of fiscal 2026, a 56.6% year-over-year increase, while adjusted earnings per share rose 167% to $4.78. For full fiscal year 2026, Wall Street analysts project 100% revenue growth, following a 133% jump in the prior quarter. In fiscal 2025, the company generated $37.38 billion in sales, up from $25.11 billion in fiscal 2024, and non-GAAP EPS soared to $8.29 from $1.30. This explosive momentum reflects surging demand for high-bandwidth memory (HBM) chips used in AI processors from leading chipmakers.

Micron’s current fabrication capacity is fully utilized, with management stating it is “more than sold out” of AI memory through 2026. To address this shortage, three major fabs are under development: an Idaho facility coming online in mid-2027, a second Idaho plant expected by late 2028, and a New York site slated for 2030. However, none of these will alleviate the shortfall in 2026, keeping memory prices elevated. The company’s gross margin is projected to reach an unprecedented 67% in its second quarter, reflecting robust pricing power in a tight market.

Despite record-setting growth, Micron trades at approximately 10 times forward earnings, compared with 30 times for larger tech peers. Its price/earnings-to-growth ratio sits below 1, underscoring a valuation discount relative to both legacy memory competitors and broader semiconductor names. With the global HBM market forecast to expand at a 40% compound annual growth rate to $100 billion by 2028, investors have a window to capture potential upside before new capacity comes online and the cyclical memory cycle rebalances.