Micron valuation surpasses $1tn as AI memory demand drives 270% share surge
While Wall Street expects 60% fiscal year growth, some estimates suggest the stock could double by year-end, though The Motley Fool has excluded it from its top 10 recommendations.
Micron Technology shares have climbed more than 270 per cent in 2026, pushing the company’s market valuation beyond the $1 trillion mark. The surge is underpinned by acute supply shortages and rising prices for DRAM and NAND memory chips, driven by the rapid expansion of artificial intelligence data centres.
DRAM memory is primarily utilised in computing chips, where demand has spiked due to increased computing power requirements for AI applications. Concurrently, NAND memory, which is essential for data storage such as solid-state drives, is also facing tight supply conditions. These constraints have allowed Micron to benefit from elevated pricing power while simultaneously working to alleviate bottlenecks through new production capacity.
Analyst consensus projects substantial revenue growth for the coming quarters, with estimates suggesting 263 per cent growth for the next quarter and 250 per cent for the subsequent period. Wall Street forecasts 60 per cent growth for Micron’s fiscal year 2027, which ends in August 2027, although some analysts believe this figure could exceed 100 per cent given the intensity of 2027 demand.
To meet this demand, Micron is expanding its manufacturing footprint. A new facility in Idaho is expected to become operational by mid-2027, with several other production sites currently under construction. This expansion comes against a backdrop of rising capital expenditure; Nvidia has estimated that global data centre capital expenditures could reach between $3 trillion and $4 trillion annually by 2030, up from an estimated $650 billion for AI hyperscalers in 2026.
Despite the bullish outlook, Micron’s stock is trading at 18 times forward earnings, compared to peer SanDisk at approximately 28 times forward earnings. While some analysts suggest the stock could double by the end of the year, The Motley Fool’s Stock Advisor service did not include Micron in its current list of 10 best stocks to buy, noting that the service has a disclosed position in the company.
