Prediction: This Will Be Micron Technology's Stock Price in 2026

Core Viewpoint - Micron Technology's stock has seen a remarkable increase of 228% in 2026, driven by strong revenue and earnings growth due to favorable demand-supply dynamics in the memory market [1][2]. Financial Performance - Micron's revenue for the first quarter of fiscal 2026 reached $13.6 billion, marking a 57% year-over-year increase, with adjusted earnings soaring by 167% to $4.78 per share [4]. - The company anticipates a significant revenue increase of 132% year-over-year in the current quarter, projecting revenue of $18.7 billion, while non-GAAP earnings are expected to rise by 440% to $8.42 per share [5]. Market Dynamics - The demand for memory chips, particularly for artificial intelligence (AI) applications in data centers, is driving a shortage in supply, leading to increased prices [6]. - Samsung has raised memory chip prices by 60%, and prices for server memory could potentially double by the end of 2026, affecting prices for smartphones and PCs as well [7]. Capital Expenditure and Supply Challenges - Micron has increased its fiscal 2026 capital expenditure forecast to $20 billion, up from $18 billion, to enhance production capacity [9]. - Despite the increase in capital spending, Micron's CEO indicated that the company can only meet 50% to two-thirds of the demand from key customers in the medium term [10]. Future Earnings Potential - Consensus estimates suggest Micron's earnings could jump by 284% to $31.88 per share in the current fiscal year, with a potential total earnings estimate of $36.66 per share over the next four quarters [12][13]. - Based on a forward earnings multiple of 25, Micron's stock could potentially reach $916, more than triple its current price, making it an attractive investment opportunity [14].