Micron’s stock has jumped 785% in one year as quarterly revenue surged 196.3% to record DRAM sales of $18.8B and NAND sales of $5.0B. Trading at a 50.8 P/E and 21.1 P/S, Micron signed a five-year strategic customer agreement even as supply meets only two-thirds of AI memory demand.
Micron posted a 196.3% year-over-year revenue increase, driven by record DRAM revenue of $18.8 billion and NAND revenue of $5.0 billion. Demand from data centers building AI infrastructure remains intense, pushing its three-year average annual revenue growth to 45.3%.
The stock trades at a P/E ratio of 50.8 and a P/S ratio of 21.1, more than double broader market multiples. Investors are pricing in a long-term shift in memory demand rather than a cyclical surge, reflecting high expectations for sustained profitability.
Micron secured its first five-year strategic customer agreement to improve revenue visibility, but current supply fulfills only 50% to two-thirds of medium-term demand. This gap highlights ongoing capacity constraints even as the company plans capacity expansions to tap AI memory needs.
