Micron Technology reports record fiscal 2026 results as AI and robotics drive memory demand
The memory giant cites a new five-year contract and a projected two-decade growth vector in humanoid robotics as key catalysts for future performance
Micron Technology shares have climbed 710 per cent over the past 12 months, propelled by surging demand for memory processors required for artificial intelligence data centres and emerging robotics applications. The company reported fiscal 2026 second-quarter sales of $23.9 billion, representing a 196 per cent year-on-year increase, while non-GAAP earnings spiked 682 per cent to $12.20 per share.
Management highlights a newly secured five-year contract for memory processors and forecasts a potential 20-year growth trajectory in the humanoid robotics sector as primary catalysts for future performance. CEO Sanjay Mehrotra projects this long-term growth vector, suggesting that AI-enabled humanoid robots will rival autonomous vehicles in their computing capacity needs.
The memory business has historically been highly cyclical, with boom periods often followed by reversals as production capacity expansions overshot. However, Micron's management believes that what the company is experiencing with the AI megatrend is unprecedented. Mehrotra noted on the earnings call that AI has fundamentally recast memory as a defining strategic asset in the AI era.
Despite the significant share price appreciation, Micron trades at a price-to-earnings ratio of approximately 27, which is lower than the broader tech sector average of 43. Major tech firms, including Meta and Alphabet, are increasing capital expenditures, with Alphabet potentially spending more in 2027 than the estimated $190 billion projected for the current year.
While the stock looks relatively cheap compared to its peers, investors should be aware that the 700 per cent increase over the past year would be hard to replicate. Each quarterly earnings report going forward will likely have high expectations built into it, and investors are likely to react strongly if those expectations are not met.
The Motley Fool, which originally reported on the surge, notes that while the ongoing AI expansion supports the company, any hint of slowing demand for artificial intelligence spending could cause the stock to stumble. The firm maintains positions in Micron Technology alongside Alphabet, Amazon, Meta Platforms, and Microsoft.
