Positioned at the very core of the artificial intelligence revolution, Micron Technology finds its advanced memory capacity fully committed through 2026. With quarterly earnings on the horizon, the explosive demand has propelled the company’s stock to gains exceeding 300% in a year, yet key valuation metrics remain surprisingly restrained.
Unprecedented Demand for High-Bandwidth Memory
The primary engine for Micron’s growth is its High-Bandwidth Memory (HBM) product line. The company has reported that its entire HBM production for the current year is already sold out. Industry demand for this critical AI infrastructure component is projected to expand at a compound annual growth rate of approximately 40% through 2028. In response, Micron is actively negotiating multi-year supply agreements with major customers, including leading AI chip designer Nvidia, whose own strong quarterly report on February 25th provided additional market momentum.
This AI-driven surge is tightening conditions across the broader memory sector. Both DRAM and NAND flash markets are experiencing constrained supply chains. To meet this demand, Micron is undertaking massive capital investments, directing $200 billion toward expanding its U.S. manufacturing footprint. This includes a $100 billion “megafab” in New York, for which the groundbreaking ceremony was held in January 2026.
Upcoming Earnings Report Sets High Bar
Investor attention is now sharply focused on the company’s upcoming financial release. Micron will announce its results for the second fiscal quarter of 2026 after the market closes on March 18th, with a conference call scheduled for 2:30 a.m. Mountain Time. The mere announcement of this date on February 24th provided a lift to the share price, which rose about 2.5% the following trading day.
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Market consensus points to a dramatic year-over-year revenue increase of 135%, reaching $18.9 billion. Earnings per share are anticipated to be around $8.50, which would represent a staggering 444% rise. This aligns with the company’s own provided guidance range of $8.22 to $8.62 per share. Analysts also expect the quarterly gross margin to land near 68%.
Institutional and Political Investor Interest
Recent regulatory disclosures reveal notable buying activity. U.S. Representative Cleo Fields reported a purchase of Micron stock valued between $100,001 and $250,000 on February 24th. The equity is also attracting substantial institutional capital. The Vanguard Group maintains a position of over 106.6 million shares, while Norway’s Government Pension Fund Global established a new position worth roughly $6.4 billion during the fourth quarter.
Valuation Remains Moderate Despite Rally
Even after a twelve-month advance of approximately 330%, Micron’s valuation appears measured. Based on consensus earnings estimates for 2026, the stock trades at a price-to-earnings ratio of about 12.5. The analyst community remains broadly bullish, with an average recommendation of “Buy” from 35 covering firms. However, the average price target of $358.38 sits slightly below the recent trading level near $364. The share price reached its all-time high in early February at $455.50.
The March 18th earnings release will be a critical test of whether Micron can justify the market’s elevated expectations. Key focuses will be the robustness of its margins, forward-looking guidance, and, most importantly, management’s perspective on the durability of the current breakneck pace of AI infrastructure investment.
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