After Surging 918%, Is Micron Stock Still a Buy? Here's What History Says.
The Motley Fool • • business
Key Points:
- Micron Technology's stock has surged 918% over the past 12 months, reaching $1,079 per share in June 2026, driven by strong demand for its high-bandwidth memory (HBM) chips used in AI accelerators and data centers.
- The company reported a 195% year-over-year revenue increase to $23.9 billion in Q2 2026, with gross margins in its cloud memory and data center businesses rising significantly to 74%.
- For fiscal Q3 2026, Micron projects revenue of $33.5 billion, a 40% increase from the previous quarter, with gross margins expected to hit 81% and earnings per share forecasted at $18.90.
- Despite a recent 12% stock price drop due to broader market reactions unrelated to Micron's fundamentals, the company remains undervalued with a forward P/E ratio of 10 and a PEG ratio of 0.37, indicating strong long-term growth potential.
- Nvidia's confirmation of Micron as a supplier for its Vera Rubin AI chip architecture further solidifies Micron's position as a key player in the AI semiconductor market.