The Surge in Micron Technology Stock Looks Poised to Continue

Core Insights - Micron Technology is a leading provider of semiconductor memory solutions and has become a key beneficiary of the AI hardware boom due to the ongoing memory chip shortage [1] - The demand for Micron's products is driven by the structural demand shock from AI hardware expansion, leading to a significant increase in stock value [2] - Micron's earnings per share (EPS) revisions are trending positively, and the company has maintained a Zacks Rank 1 (Strong Buy) since August [3] Demand and Product Performance - Micron's high-bandwidth memory (HBM), server-class DRAM, and DDR5 memory products are experiencing explosive demand, particularly from AI chip manufacturers [4] - The company's FY25 sales reached a record $37.38 billion, with annual earnings at $8.29 per share, and projections indicate continued growth [5] Earnings Projections - Wall Street anticipates a 300% increase in Micron's EPS for FY26 to $33.22, with a further 35% increase projected for FY27 to $44.95 [6] - Recent earnings estimates for FY26 and FY27 have risen significantly, with increases of 78% and 91% over the last 60 days, respectively [6][7] Valuation Metrics - Despite a substantial stock rally, Micron trades at a forward P/E ratio of 12X, which is below the P/E ratios of other high-growth tech stocks and offers a discount compared to the S&P 500 [8] - Micron's valuation is also lower than competitors like Sandisk Corporation and Western Digital, which have forward earnings multiples of 23X and 31X, respectively [8] Stock Performance - Since being added to the Zacks Rank 1 (Strong Buy) list on August 20, 2025, Micron's stock has surged by 865% [10]