Micron Technology Expected to Double Revenue by 2026 Amid Soaring AI Chip Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: NASDAQ.COM
- Significant Revenue Growth: Micron Technology reported $13.6 billion in revenue for Q1 FY2026, a 57% year-over-year increase, showcasing strong performance across core segments like cloud memory and mobile, indicating its growing market position in the AI infrastructure era.
- Robust Margins: The company achieved gross margins of at least 40% and operating margins of at least 30% across all business lines, reflecting strong product demand and lucrative unit economics, further solidifying its competitive advantage in the semiconductor industry.
- Expansive Market Outlook: The total addressable market for high-bandwidth memory is projected to reach $100 billion by 2028, nearly tripling its current size, providing strong support for Micron's future growth and potentially leading to a breakout moment similar to Nvidia's.
- Massive Valuation Potential: Despite trading at a forward P/E of just 12.3, significantly lower than other chip leaders, Micron's valuation could rise to a forward P/E of 30 as market awareness of its critical role increases, potentially reaching a market cap of $1 trillion, highlighting its long-term investment appeal.
Analyst Views on MU
Wall Street analysts forecast MU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for MU is 336.12 USD with a low forecast of 235.00 USD and a high forecast of 500.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 389.090
Low
235.00
Averages
336.12
High
500.00
Current: 389.090
Low
235.00
Averages
336.12
High
500.00
About MU
Micron Technology, Inc. provides memory and storage solutions. The Company delivers a portfolio of high-performance dynamic random-access memory (DRAM), NAND, and NOR memory and storage products through its Micron and Crucial brands. The Company's products enable advancing in artificial intelligence (AI) and compute-intensive applications. Its segments include Compute and Networking Business Unit (CNBU), Mobile Business Unit (MBU), Embedded Business Unit (EBU), and Storage Business Unit (SBU). CNBU segment includes memory products and solutions sold into the data center, PC, graphics, and networking markets. MBU segment includes memory and storage products sold into the smartphone and other mobile-device markets. EBU segment includes memory and storage products and solutions sold into the intelligent edge through the automotive, industrial, and consumer embedded markets. SBU segment includes SSDs and component-level storage solutions sold into the data center, PC, and consumer markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
