Micron Technology has already reported fiscal first-quarter 2026 results, posting record sales of US$13.64 billion and net income of US$5.24 billion, with earnings per share from continuing operations rising sharply year on year.
The company’s performance was powered by surging demand and tight supply in AI-focused memory, particularly high-bandwidth memory for data centers, which supported stronger pricing and margins across its portfolio.
Next, we’ll examine how Micron’s record AI-driven earnings and bullish revenue guidance reshape its existing investment narrative and risk balance.
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To own Micron today, you have to believe the AI-driven memory upcycle can support healthy pricing and margins despite the sector’s well known cyclicality and heavy capital needs. The latest record US$13.64 billion quarter and sharply higher guidance reinforce the near term catalyst of tight AI memory supply, while also amplifying the main risk that aggressive capacity expansion and a cyclical DRAM and NAND market could eventually swing pricing the other way.
Among recent developments, Micron’s decision to exit its Crucial consumer business and sharpen its focus on enterprise and AI centric products ties directly into this AI demand thesis. That shift, combined with management’s plan to lift fiscal 2026 capital expenditure to around US$20 billion to expand high bandwidth memory capacity, could intensify both the upside from current AI pricing strength and the long term risk of overbuilding if memory demand normalizes.
Yet investors should also be aware that while AI demand looks strong today, memory pricing can quickly reset if…
Read the full narrative on Micron Technology (it’s free!)
Micron Technology’s narrative projects $53.6 billion revenue and $13.6 billion earnings by 2028.
Uncover how Micron Technology’s forecasts yield a $249.31 fair value, a 11% upside to its current price.
MU 1-Year Stock Price Chart
Thirty five fair value estimates from the Simply Wall St Community span roughly US$98 to US$249 per share, underscoring how far apart individual views can be. Against that backdrop, Micron’s record AI driven earnings and heavy planned capex spotlight both the appeal and the cyclicality risk in its core memory markets, inviting you to weigh several competing interpretations of what comes next.
Explore 35 other fair value estimates on Micron Technology – why the stock might be worth less than half the current price!
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include MU.
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