Micron trades at roughly 10 times forward earnings, compared with the 30 times forward multiple typical for large technology firms. Wall Street consensus forecasts project 133% year-over-year revenue growth in the upcoming quarter and 100% growth for fiscal 2026. In its most recent fiscal year, the company’s non-GAAP earnings per share climbed from $1.30 to $8.29, while revenue expanded from $25.11 billion to $37.38 billion. Despite these robust figures, investor skepticism persists due to the cyclical nature of memory markets, which tend to oversupply capacity during downturns, driving prices lower until supply and demand realign.

During its first quarter earnings call, the chief business officer confirmed that global demand for high-bandwidth memory (HBM) has fully consumed current production capacity. Industry forecasts estimate HBM markets will grow at a 40% compound annual growth rate to reach $100 billion by 2028. To address the shortfall, the company is constructing three new fabs: one in Idaho slated to begin output by mid-2027, a second Idaho facility targeting end-2028 operations, and a New York plant expected online by 2030. However, these projects do not alleviate the current 2026 capacity crunch, potentially sustaining elevated memory prices and supporting gross margins that management expects to reach an unprecedented 67% in the second quarter.

In a strategic move to bolster DRAM capacity, the company has agreed to acquire a fabrication campus in Taiwan from a leading foundry for $1.8 billion in cash. The P5 site, located in Tongluo, Miaoli County, adds significant wafer output potential and complements existing global facilities. This transaction accelerates the company’s plan to diversify geographic production, reduce lead times for key customers, and capture a larger share of the surging AI memory market without waiting for greenfield projects to come online.