Micron Technology currently trades at approximately 10 times forward earnings, well below the industry average of 30 times for large-cap tech peers. Despite this discounted valuation, Wall Street analysts project 133% revenue growth in the next quarter and 100% growth for fiscal 2026, driven by unprecedented demand for high-bandwidth memory (HBM) used in artificial intelligence applications. Over the past two years, Micron has delivered robust revenue increases, and consensus forecasts anticipate continued margin expansion as pricing power strengthens in a constrained supply environment.

During its most recent quarterly earnings call, Chief Business Officer Sumit Sadana confirmed that Micron is “more than sold out” of key memory products through 2026. The company’s gross margin, which currently stands near 45.5%, is expected to climb to an all-time high of 67% in Q2, driven by elevated pricing. With existing fabs operating at full tilt, Micron faces a capacity shortfall that could sustain high memory prices and profit margins until new facilities come online. The first Idaho fabrication plant is scheduled to begin output in mid-2027, a second Idaho site by late 2028, and a New York fab is slated for 2030.

To bolster its production footprint, Micron announced the acquisition of Powerchip Semiconductor’s P5 fabrication site in Tongluo, Miaoli County, Taiwan, for US$1.8 billion in cash. This transaction adds significant DRAM and HBM capacity and accelerates Micron’s ability to meet surging AI memory demand. The acquired facility, which includes advanced 12nm and 16nm process lines, is expected to begin ramping volume in early 2027, bridging the gap before Micron’s greenfield fabs reach full scale and underpinning long-term revenue growth.