Micron Still Has Room to Grow

Micron Technology is a global leader in memory and storage solutions, a foundational part of nearly all modern electronics. Over the past six months, Micron’s share price has surged by nearly 70 percent, and its year-to-date gain now stands at over 92 percent, surpassing Wall Street expectations.

Behind this rally lies Micron’s growing strategic importance in the AI and data center economy. Its memory chips are increasingly essential for powering artificial intelligence applications, with top-tier customers like NVIDIA, Apple, Samsung, and Lenovo relying on Micron’s cutting-edge technology.

Top analysts from Citi, TDCowen, and Deutsche Bank remain bullish ahead of upcoming earnings, pointing to tailwinds from the expanding data center market, which is forecasted to grow by 33 percent annually through 2030. In Q4 2025 alone, analysts expect a staggering 109 percent year-over-year revenue increase.

With industry momentum, strong financials, and unmatched exposure to AI demand, Micron is shaping up to be one of the strongest long-term semiconductor bets of 2025.

Despite Micron’s impressive 2025 rally, many investors believe it still trades at a discount to its true value. The key reason is Micron's forward price-to-earnings ratio remains significantly lower than peers. Its 2026 forward P/E of just 9.72x is well below the semiconductor industry average.

This disconnect exists because much of Micron’s value lies in its exposure to high-bandwidth memory, a crucial technology for powering AI workloads. Micron’s HBM product lines are sold out through 2026 and the next-generation HBM4 chips are already generating buzz.

Micron is evolving from a cyclical chipmaker into a long-term growth story. With AI infrastructure booming, its undervaluation won’t last much longer.

Wall Street is focused on Micron ahead of its next earnings release. In recent weeks, Citi, Mizuho, and Susquehanna all raised their price targets, with Citi and Susquehanna now targeting $200 and Mizuho not far behind at $182.

Citi also reiterated its Buy rating, citing stronger-than-expected demand for AI-ready memory chips. Micron’s earnings per share expectations have risen accordingly, with investors anticipating continued upside surprises.

Micron already delivered an EPS of $3.03 in Q4 2025, significantly beating estimates, and analysts expect the trend to continue. Key themes to watch in the upcoming report include AI product demand, margin guidance, and capacity updates for 2026.

The AI revolution is triggering a record wave of infrastructure investment. From Microsoft’s $30 billion supercomputer project in the UK to Nvidia’s backing of OpenAI with up to $100 billion in funding, the scale of global AI investment is massive.

Micron sits at the heart of this growth, supplying high-bandwidth DRAM and NAND memory required to keep AI models running. With OpenAI’s Stargate project planning multi-gigawatt-scale data centers, Micron’s role as a memory provider is becoming even more critical.

Micron has even reorganized internally to reflect this shift, aligning its product roadmap to the growing demands of the AI and cloud markets.

Micron’s financial foundation is solid. The company continues to ramp up R&D investment, especially in AI-focused memory, while improving profitability. Recent quarters show operating margin expansion, and Micron’s R&D budget now exceeds historical averages, reflecting its strategy to stay ahead in HBM, DRAM, and NAND technology.

This combination of profitability improvements and innovation spending makes Micron uniquely well positioned to capitalize on future AI cycles.

Micron has built a strong track record of earnings performance, consistently delivering beats on EPS and revenue.

In Q4 2025, Micron reported an EPS of $3.03 compared to estimates ranging from $2.53 to $2.86. Revenue was $11.3 billion, also above expectations. This marked the third consecutive quarter of double beats in fiscal 2025.

Micron has now beaten expectations for eight straight quarters. This consistency reflects both demand strength and operational execution and has been a key driver of investor confidence.

Micron remains attractively valued even after its run-up. Its forward P/E is 13.4x, well below the sector median of 19.2x. Its forward price-to-sales ratio near 3.7x is also lower than that of leading AI peers like Nvidia and AMD.

This valuation gap is notable, especially given Micron’s exposure to the same AI megatrends as its higher-multiple competitors. Even a re-rating to average sector multiples would imply a substantial upside, with some analysts suggesting prices well above $200 per share.

While the bullish case for Micron is strong, risks remain. Competition from Samsung and SK Hynix is intensifying, particularly in high-bandwidth memory. The memory market itself is highly cyclical and could be affected by any slowdown in AI or cloud infrastructure spending.

There has also been regular insider selling and approximately $200 million in quarterly stock-based compensation. Although much of this is standard practice in tech and not tied to bearish sentiment, it still contributes to dilution. In addition, any missteps in yield, supply chains, or global trade could pressure margins.

Micron holds approximately $11.9 billion in cash and $14 billion in debt, resulting in low net leverage. Its investment-grade profile gives it the flexibility to raise capital at favorable terms if needed. This reduces reliance on equity and helps limit shareholder dilution.

This financial strength provides a buffer against the memory industry’s inherent volatility and supports Micron’s long-term strategy.

Looking further ahead, Micron’s FY2027 forward P/E projection is just 10.5x. This sets up an attractive long-term buying opportunity, particularly as AI spending is expected to grow throughout the decade.

Micron is well positioned to benefit across multiple AI investment cycles, not just a short-term surge.

From a technical perspective, Micron’s RSI currently signals overbought conditions, suggesting the stock may cool off in the near term. However, its price remains well above the long-term simple moving average, confirming a strong bullish trend.

Crucially, the fundamentals support the technical momentum. Robust demand, earnings strength, and favorable industry trends provide a solid foundation, suggesting that any pullbacks may represent long-term buying opportunities.

Governments worldwide are investing heavily in AI infrastructure. The United States has supported projects in Wisconsin, Arizona, and Norway, while other nations like the UK, UAE, and Japan are also building next-gen AI facilities.

As a key supplier of high-performance memory, Micron stands to benefit from this global infrastructure buildout. Its products are necessary components in nearly every advanced AI deployment on the horizon.

Micron insiders, including CEO Sanjay Mehrotra, regularly sell shares through pre-scheduled trading plans. While the lack of insider buying may be seen as a mild negative, it is typical in the tech industry where executives are already highly exposed to company stock.

Micron also issues about $200 million in stock-based compensation each quarter. While this contributes to modest dilution, it is not excessive compared to other major tech firms and is an accepted tool for attracting and retaining top talent.

Given Micron’s growing earnings and market position, this dilution is manageable and does not materially weaken the bullish case.

Micron offers a rare combination of explosive earnings growth, AI-driven product demand, attractive valuation, and a strong balance sheet. While competition and market cycles require ongoing attention, the upside potential significantly outweighs the risks.

As Micron continues to execute and deliver results, it remains a strong buy ahead of earnings and into 2026. Investor sentiment has been overwhelmingly positive. Retail traders view Micron as one of the leading beneficiaries of the AI boom, and institutional investors are showing strong conviction. Hedge funds have increased their stakes and long-term investors like pension funds are holding steady.

With confidence from both Wall Street and Main Street, Micron is becoming one of the most widely embraced infrastructure plays in the AI space. The semiconductor industry is undergoing a transformation powered by AI and data. Micron Technology sits at the center of this shift. As covered throughout this report, Micron’s rising earnings, leadership in next-gen memory, and robust financial position give it a powerful long-term edge.

The company is positioning itself for the future of technology, from generative AI to cloud computing and beyond. Even after a substantial run-up in 2025, Micron remains attractively valued with room to grow.

All signs point to Micron Technology being a top semiconductor pick for 2025 and the years ahead.