Micron Technology Forecasts 132% Revenue Growth for FY2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 27 2025
0mins
Should l Buy MU?
Source: Yahoo Finance
- Revenue Growth Outlook: Micron Technology anticipates its revenue for the current quarter to reach $18.7 billion, representing a substantial year-over-year increase of 132%, indicating that strong demand in the memory chip market will continue to drive its performance growth.
- Profitability Enhancement: The company expects non-GAAP earnings per share to soar by 440% to $8.42, reflecting a significant improvement in Micron's profitability under favorable pricing conditions, which further solidifies its market position.
- Increased Capital Expenditure: Micron has raised its fiscal 2026 capital expenditure forecast to $20 billion, up from the previous estimate of $18 billion, demonstrating the company's strong commitment to meeting the surging memory demand.
- Market Dynamics Analysis: The ongoing shortage of memory chips due to skyrocketing demand for AI accelerators is expected to persist, with server memory prices potentially doubling by the end of 2026, which will further enhance Micron's market performance and profitability.
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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: 383.500
Low
235.00
Averages
336.12
High
500.00
Current: 383.500
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.
Micron Technology's Stock Quadruples: Key Factors Behind Growth
- Demand-Driven Growth: Micron Technology's stock has quadrupled over the past year, primarily fueled by strong demand for memory chips from AI hyperscalers, which not only enhances the company's market position but also lays the groundwork for sustained future growth.
- Changing Market Dynamics: The CEO believes this market cycle is different, as memory has become a strategic asset for AI functionalities, strengthening the company's competitive edge, particularly in real-time data processing capabilities.
- Diverse Market Opportunities: Accelerating data center builds, an upgrade cycle in PC hardware, and increasing memory demand in smartphones are benefiting Micron across multiple markets, with expectations for continued performance growth in the coming years.
- Capital Expenditure Plans: Micron plans to increase capital expenditures to $20 billion to meet growth demands by 2026; despite potential risks of supply gluts, the company is committed to expanding production capacity to maintain market competitiveness.
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- Employment Cost Index Decline: The US Q4 employment cost index rose by +0.7% quarter-over-quarter, below the expected +0.8%, marking the smallest increase in 4.5 years, suggesting easing labor cost pressures that may influence the Fed's monetary policy decisions.
- Mixed Market Performance: The Dow Jones Industrial Average reached a new all-time high, closing up +0.10%, while the S&P 500 and Nasdaq 100 indices fell by -0.33% and -0.56%, respectively, reflecting divergent market sentiment and uncertainty.
- Focus on Upcoming Economic Data: The market will closely monitor upcoming economic data, including January nonfarm payrolls and unemployment rate, which are expected to significantly influence future monetary policy and market trends.
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- Surge in AI Hardware Spending: Analysts at Goldman Sachs predict that tech giants will exceed $500 billion in AI-related capital expenditures by 2026, with a significant portion allocated to data center hardware like AI accelerator chips and high-bandwidth memory devices, driving market demand and investment returns for related companies.
- Micron Technology's Strong Growth: Micron's fiscal first-quarter revenue surged 57% year-over-year to $13.6 billion, primarily driven by cloud data center purchases, and with memory shortages expected to last until 2027, the company is positioned for a near-term windfall that could be reinvested or returned to shareholders through stock buybacks.
- Broadcom's Custom Chip Opportunity: Broadcom's application-specific integrated circuits (ASICs) provide optimized hardware solutions for clients, with fourth-quarter revenue increasing 28% year-over-year to $18 billion, and AI semiconductor revenue soaring 74% due to custom chip demand, showcasing its strong competitive position in the AI market.
- Shifting Market Dynamics: As the generative AI industry matures, Broadcom's strategic partnerships with OpenAI and Google indicate that the custom chip market will continue to expand, positioning Broadcom to capture greater market share, and despite a forward P/E of 31, it remains a reasonable investment choice.
See More
US Retail Sales Weakness Impacts Markets
- Retail Sales Stagnation: US retail sales for December were unchanged month-over-month, falling short of the +0.4% expectation, indicating weakness in consumer spending that could lead to a downward revision in Q4 GDP, thereby impacting overall economic growth forecasts.
- Employment Cost Index Decline: The Q4 employment cost index rose by 0.7% quarter-over-quarter, below the expected 0.8%, marking the smallest increase in 4.5 years, suggesting easing labor cost pressures that may influence Federal Reserve monetary policy decisions.
- Positive Earnings Outlook: More than half of S&P 500 companies have reported earnings, with 79% exceeding expectations, and Q4 earnings growth is projected at 8.4%, reflecting strong corporate profitability that could support stock market performance.
- Market Focus on Economic Data: This week, the market will concentrate on upcoming economic data releases, including non-farm payrolls and CPI, which are expected to influence investor expectations regarding future interest rate policies and subsequently affect stock market volatility.
See More
Analysis of Power Inflow Signal and MU Performance
- Power Inflow Signal: The Power Inflow alert, developed by TradePulse, is issued within the first two hours of trading, indicating a significant shift in order flow that suggests a strong trend toward buying activity, thereby signaling a potential bullish price movement for the rest of the day, making it a strategic entry point for active traders.
- Real-Time Order Flow Analysis: Order flow analytics examine buying and selling trends from both retail and institutional traders by analyzing volume, timing, and order size, providing deeper insights into stock price behavior and market sentiment, enabling traders to make more informed decisions.
- MU Stock Performance: At the time of the Power Inflow signal, MU was priced at $370.40, and subsequently reached an intraday high of $381.07 at 2:45 PM EST, reflecting a 2.88% increase, which demonstrates the effectiveness of the signal and market response.
- Investment Risk Advisory: While the analysis based on order flow data offers market insights, the article emphasizes investment risks, including the possibility of principal loss, advising investors to consult licensed financial advisors before making investment decisions.
See More
Micron Stock Declines Despite Buy Recommendations
- Stock Decline: Micron Technology (MU) shares fell 3% on Tuesday, marking a second consecutive day of decline despite being rated a 'buy' by Wall Street, indicating a lack of investor confidence in the stock.
- Analyst Price Target: TD Cowen set a price target of $600 for Micron, predicting the company could earn as much as $60 per share due to the booming DRAM market, reflecting optimism about its future profitability.
- Deutsche Bank's Perspective: Deutsche Bank analyst Melissa Weathers noted that unprecedented tight supplies of DRAM and high demand for HBM will drive up Micron's chip prices, although her earnings forecast of $46.50 per share is lower than TD Cowen's expectations.
- Market Risk Warning: Despite the optimistic outlook for Micron, Weathers cautioned that increased supply from competitors could lead to a decline in memory pricing, potentially impacting Micron's sales and profits, which investors need to be aware of.
See More
Micron Technology's Stock Quadruples: Key Factors Behind Growth
- Demand-Driven Growth: Micron Technology's stock has quadrupled over the past year, primarily fueled by strong demand for memory chips from AI hyperscalers, which not only enhances the company's market position but also lays the groundwork for sustained future growth.
- Changing Market Dynamics: The CEO believes this market cycle is different, as memory has become a strategic asset for AI functionalities, strengthening the company's competitive edge, particularly in real-time data processing capabilities.
- Diverse Market Opportunities: Accelerating data center builds, an upgrade cycle in PC hardware, and increasing memory demand in smartphones are benefiting Micron across multiple markets, with expectations for continued performance growth in the coming years.
- Capital Expenditure Plans: Micron plans to increase capital expenditures to $20 billion to meet growth demands by 2026; despite potential risks of supply gluts, the company is committed to expanding production capacity to maintain market competitiveness.
See More
Mixed Close for US Stocks as Retail Sales Stagnate
- Retail Sales Weakness: US December retail sales were unchanged month-over-month, falling short of the +0.4% expectation, indicating weakness in consumer spending that could lead to a downward revision in Q4 GDP, thereby impacting market confidence and economic growth outlook.
- Employment Cost Index Decline: The US Q4 employment cost index rose by +0.7% quarter-over-quarter, below the expected +0.8%, marking the smallest increase in 4.5 years, suggesting easing labor cost pressures that may influence the Fed's monetary policy decisions.
- Mixed Market Performance: The Dow Jones Industrial Average reached a new all-time high, closing up +0.10%, while the S&P 500 and Nasdaq 100 indices fell by -0.33% and -0.56%, respectively, reflecting divergent market sentiment and uncertainty.
- Focus on Upcoming Economic Data: The market will closely monitor upcoming economic data, including January nonfarm payrolls and unemployment rate, which are expected to significantly influence future monetary policy and market trends.
See More
Goldman Sachs Predicts Over $500 Billion AI Spending by 2026
- Surge in AI Hardware Spending: Analysts at Goldman Sachs predict that tech giants will exceed $500 billion in AI-related capital expenditures by 2026, with a significant portion allocated to data center hardware like AI accelerator chips and high-bandwidth memory devices, driving market demand and investment returns for related companies.
- Micron Technology's Strong Growth: Micron's fiscal first-quarter revenue surged 57% year-over-year to $13.6 billion, primarily driven by cloud data center purchases, and with memory shortages expected to last until 2027, the company is positioned for a near-term windfall that could be reinvested or returned to shareholders through stock buybacks.
- Broadcom's Custom Chip Opportunity: Broadcom's application-specific integrated circuits (ASICs) provide optimized hardware solutions for clients, with fourth-quarter revenue increasing 28% year-over-year to $18 billion, and AI semiconductor revenue soaring 74% due to custom chip demand, showcasing its strong competitive position in the AI market.
- Shifting Market Dynamics: As the generative AI industry matures, Broadcom's strategic partnerships with OpenAI and Google indicate that the custom chip market will continue to expand, positioning Broadcom to capture greater market share, and despite a forward P/E of 31, it remains a reasonable investment choice.
See More
US Retail Sales Weakness Impacts Markets
- Retail Sales Stagnation: US retail sales for December were unchanged month-over-month, falling short of the +0.4% expectation, indicating weakness in consumer spending that could lead to a downward revision in Q4 GDP, thereby impacting overall economic growth forecasts.
- Employment Cost Index Decline: The Q4 employment cost index rose by 0.7% quarter-over-quarter, below the expected 0.8%, marking the smallest increase in 4.5 years, suggesting easing labor cost pressures that may influence Federal Reserve monetary policy decisions.
- Positive Earnings Outlook: More than half of S&P 500 companies have reported earnings, with 79% exceeding expectations, and Q4 earnings growth is projected at 8.4%, reflecting strong corporate profitability that could support stock market performance.
- Market Focus on Economic Data: This week, the market will concentrate on upcoming economic data releases, including non-farm payrolls and CPI, which are expected to influence investor expectations regarding future interest rate policies and subsequently affect stock market volatility.
See More
Analysis of Power Inflow Signal and MU Performance
- Power Inflow Signal: The Power Inflow alert, developed by TradePulse, is issued within the first two hours of trading, indicating a significant shift in order flow that suggests a strong trend toward buying activity, thereby signaling a potential bullish price movement for the rest of the day, making it a strategic entry point for active traders.
- Real-Time Order Flow Analysis: Order flow analytics examine buying and selling trends from both retail and institutional traders by analyzing volume, timing, and order size, providing deeper insights into stock price behavior and market sentiment, enabling traders to make more informed decisions.
- MU Stock Performance: At the time of the Power Inflow signal, MU was priced at $370.40, and subsequently reached an intraday high of $381.07 at 2:45 PM EST, reflecting a 2.88% increase, which demonstrates the effectiveness of the signal and market response.
- Investment Risk Advisory: While the analysis based on order flow data offers market insights, the article emphasizes investment risks, including the possibility of principal loss, advising investors to consult licensed financial advisors before making investment decisions.
See More
Micron Stock Declines Despite Buy Recommendations
- Stock Decline: Micron Technology (MU) shares fell 3% on Tuesday, marking a second consecutive day of decline despite being rated a 'buy' by Wall Street, indicating a lack of investor confidence in the stock.
- Analyst Price Target: TD Cowen set a price target of $600 for Micron, predicting the company could earn as much as $60 per share due to the booming DRAM market, reflecting optimism about its future profitability.
- Deutsche Bank's Perspective: Deutsche Bank analyst Melissa Weathers noted that unprecedented tight supplies of DRAM and high demand for HBM will drive up Micron's chip prices, although her earnings forecast of $46.50 per share is lower than TD Cowen's expectations.
- Market Risk Warning: Despite the optimistic outlook for Micron, Weathers cautioned that increased supply from competitors could lead to a decline in memory pricing, potentially impacting Micron's sales and profits, which investors need to be aware of.
See More
