Micron Technology Gains 625% Market Share Amid Unprecedented Memory Chip Shortage
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: NASDAQ.COM
- Market Share Growth: Micron Technology has increased its market share in DRAM and NAND flash memory by 10 percentage points and 625%, respectively, indicating a rapid enhancement of its competitive position amid an unprecedented memory chip supply shortage, which is expected to further solidify its market standing.
- Strong Financial Performance: In the first quarter of fiscal 2026, Micron reported revenue of $13.6 billion, a 20% year-over-year increase, with non-GAAP gross margin expanding by 17 percentage points and adjusted earnings reaching $4.78 per share, showcasing robust pricing power and profit growth potential.
- Surge in Industry Demand: CEO Sanjay Mehrotra highlighted that the demand for AI data center buildouts has sharply increased forecasts for memory and storage, with expectations that industry supply will remain substantially short of demand for the foreseeable future, providing strong support for Micron's future growth.
- Competitor Underperformance: While Sandisk has also gained market share in NAND, its current valuation at 170 times earnings appears excessively high, whereas Micron's valuation of 32 times earnings seems reasonable, suggesting that investors should consider increasing their positions in Micron stock at this time.
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: 362.750
Low
235.00
Averages
336.12
High
500.00
Current: 362.750
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 Cloud Memory Business Unit (CMBU), Core Data Center Business Unit (CDBU), Mobile and Client Business Unit (MCBU) and Automotive and Embedded Business Unit (AEBU). CMBU is focused on memory solutions for large hyperscale cloud customers, and high bandwidth memory (HBM) for all data center customers. CDBU is focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers. MCBU is focused on memory and storage solutions for mobile and client segments. AEBU is focused on memory and storage solutions for the automotive, industrial, and consumer segments.
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.
