Micron Is the Best-Performing Artificial Intelligence (AI) Stock of the Past Year -- Up 318%. Can It Keep Going in 2026?

Core Viewpoint - Micron Technology has experienced a remarkable 318% increase in share price over the past year, outperforming other AI companies like Nvidia and Palantir Technologies [1] Group 1: Company Performance - Micron's revenue and earnings have significantly benefited from a surge in memory prices, primarily driven by demand from AI data centers [2] - The company sells both DRAM and NAND flash chips, with DRAM accounting for nearly 80% of its revenue [6] - Micron's stock has already gained 36% in 2026 and is currently trading at a premium earnings multiple of 38, justified by an expected 322% increase in earnings to $35 per share this year [12] Group 2: Market Dynamics - A favorable pricing environment is expected to persist, with DRAM prices projected to increase by 62% in Q1 2026 and NAND flash prices by 40% in the current quarter [5] - The DRAM chip shortage is anticipated to last for the next 12 to 18 months, with prices expected to surge by 70% in Q2 2026 due to strong AI-driven demand [7] - The high-bandwidth memory (HBM) market is undersupplied, consuming three times the semiconductor wafer capacity of standard memory chips, which contributes to the overall memory chip shortage [10] Group 3: Future Outlook - The HBM market's revenue is expected to nearly triple from 2025 to 2028, reaching $100 billion, indicating sustained demand for Micron's products [11] - If Micron achieves earnings of $46.63 per share in the next fiscal year, its stock price could potentially rise to $1,189, suggesting further upside potential [14][15]