Micron Technology recently joined the elite club of trillion-dollar companies after its stock skyrocketed more than 900% in one year.
The company is benefiting from a tremendous memory pricing cycle, thanks to demand for artificial intelligence infrastructure.
Tight memory supply is driving ridiculous pricing growth, boosting revenue and profitability, and we expect supply constraints to keep prices rising into 2027. But the key question is how long this cycle lasts and how high it goes.
We expect a peak between 2027 and 2028 and a precipitous downcycle thereafter, in 2029.
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Micron Technology (MU) Investment Thesis
Micron Technology, Inc. delivered a record-breaking quarter with Q3 FY26 revenue of $41.5B, up 346% YoY, and non-GAAP gross margin surging to 84.9%.
MU's growth is powered by AI data center demand and transformative long-term take-or-pay contracts, securing ~50% of revenue and reducing cyclicality.
Management guides for $50B revenue next quarter and $30B in free cash flow for Q4 FY26, fully funding aggressive CapEx from operational cash generation.
I estimate MU's EPS at $114 in 12 months, supporting a $1,725/share price target by July 2027 at 15x P/E, with upside potential if growth outperforms.