Micron Technology Inc. (NASDAQ: MU) has experienced an extraordinary surge in its stock price during 2026, with a remarkable increase exceeding 200%. This growth trajectory aligns with the company’s impressive financial results, reflecting strong revenue and profit gains attributed to advantageous market dynamics in the memory semiconductor sector.
Most recently, Micron reported robust fiscal first-quarter results for the period ending November 27, underscoring a positive start to its 2026 fiscal year. This sets a promising stage for its performance throughout the remainder of the year. The key question remains whether the company can maintain this momentum in the later parts of the fiscal cycle.
In the previous quarter, Micron’s revenue surged by 57% year over year, reaching $13.6 billion. This outstanding top-line growth was coupled with operational efficiencies and favorable pricing conditions, which contributed to a 7.5 percentage point increase in its non-GAAP operating margin, elevating it to 35%. Consequently, the company’s adjusted earnings per share soared 167% to $4.78.
Looking ahead, Micron’s management anticipates considerable acceleration in growth. Guidance for the current fiscal quarter projects revenue to hit $18.7 billion, indicating a 132% increase compared to the previous year. Furthermore, non-GAAP earnings are expected to catapult by 440% to $8.42 per share.
These optimistic projections can be attributed to a notable shift in the memory market fundamentals. Demand for memory chips has been amplified substantially due to the expansion of artificial intelligence (AI) applications, particularly AI accelerators implemented in data centers. This increase in demand has outpaced the available supply of server memory, generating shortages and driving prices upward.
Evidence of pricing pressure includes reports that leading memory manufacturer Samsung Electronics has increased memory chip prices by approximately 60%. Independent market research from Counterpoint Research suggests that the price of server memory utilized for AI workloads may potentially double by the end of 2026. Beyond server memory, a similar scarcity and pricing trend are anticipated in memory modules used in smartphones and personal computers over the coming year.
Recognizing this robust demand, Micron has revised its fiscal 2026 capital expenditure forecast upward to $20 billion, marking a significant increase from its prior $18 billion estimate and a substantial rise relative to $13.8 billion spent the previous fiscal year. This capital infusion reflects the company's commitment to expanding production capabilities.
Nonetheless, despite this elevated investment, Micron’s leadership acknowledges that supply constraints will continue. In addressing analysts during the latest earnings call, CEO Sanjay Mehrotra highlighted that the supply shortage remains so pronounced that the company is only able to fulfill between half to two-thirds of the demand from key customers. He emphasized a strong focus on enhancing supply capabilities while making necessary capital investments.
The persistence of these supply-demand dynamics indicates that the market environment supporting Micron’s growth trajectory is likely to persist at least through 2026.
Consensus analyst estimates forecast that Micron’s earnings per share will increase by 284% for the current fiscal year, reaching $31.88. Given the most recent quarterly earnings of $4.78 per share, the company would need to generate approximately $27.10 per share over the remaining three quarters.
Modeling a scenario in which Micron's earnings growth moderates to a 100% increase in the first quarter of fiscal 2027, resulting in earnings of $9.56 per share, the aggregate earnings for the next four quarters would total $36.66 per share.
Applying the Nasdaq-100 index’s forward price-to-earnings ratio of 25 to this estimated earnings figure suggests a potential stock price target above $900 within the next year. This projection implies that Micron's stock could more than triple from current levels, presenting an attractive valuation relative to its rapid growth profile.
Synthesizing the current results, growth forecasts, and market conditions, investors may find Micron Technology’s shares appealing, trading around 25 times earnings with strong prospects for continued expansion driven by enduring supply constraints and surging memory chip demand.