Micron Technology’s (NASDAQ:MU) shares rose 15% after it reported top and bottom line growth in its first fiscal quarter, which Morgan Stanley called the best ever for the US Semis Industry outside Nvidia.
Memory-chip manufacturer forecasts adjusted earnings per share of $8.42 on revenue of $18.7 Billion, which is well above Wall Street’s expectations of $4.78 and $14.2 Billion in sales.
After the surge in stock price following its earnings, Micron is now trading at a staggering 300% above its low for this year.
Is Micron’s Q1 Report a good reason to buy Micron Stock?
Micron’s stock has been volatile in the past, but the AI-driven market for memory chips will likely change that.
In the call with investors, Sumit Sadana said that the business head of the company had confirmed, “We have an unmet significant demand.” “We’re actually more than sold-out,” he added.
MU estimates that the market for high bandwidth memory is expected to grow by a staggering 40% CAGR over the next three-year period.
These bold predictions suggest that MU is still selling at a significant discount. Massive gains are expected in the coming year.
Micron Technology’s 0.18% yield on dividends, combined with its stock-buyback program, is another reason why you should include it in your portfolio for 2026.
MU stocks are trading at a very attractive price
Micron’s shares are on an extraordinary uptrend and they still remain cheaper than many of their AI competitors.
The Nasdaq listed firm currently trades at an forward P/E ratio of 12, which is much lower than Nvidia’s north of 40.
The overall MU picture is just as appealing from a technological perspective.
Despite a massive surge in 2025 its 100-day relative strengths index (RSI), currently stands at around 59 – indicating that the bullish momentum has not yet been exhausted.
Barchart also reports that options traders have priced in an increase to more than $300 for this AI stock during the first quarter 2026.
What should you do with Micron in 2026?
Morgan Stanley’s experts believe that the artificial intelligence (AI) tailwinds are likely to drive MU shares even higher than their current levels by 2026.
Memory will be the largest beneficiary of the next 12 months’ AI boom.
Micron’s recent results show how the AI cycle has dramatically reshaped memory markets, and have positioned the company to be one of the most exciting growth stories in the industry heading into 2026.
Analysts say that if demand continues to rise and the supply is tight, the stock price could defy historical volatility. This would reward those investors who are willing to take advantage of the AI boom’s next phase.
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