How Much Higher Can Micron Stock Go?

The semiconductor manufacture sits astatine the bosom of the artificial quality (AI) roar -- without precocious chips, this revolutionary bundle wouldn't beryllium possible. But much than conscionable processing powerfulness is required.

Micron Technology (NASDAQ: MU) is simply a starring supplier of representation and retention chips, not lone for information centers (where astir AI improvement happens), but besides for idiosyncratic computers and smartphones, wherever AI workloads are gradually migrating.

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It was 1 of the best-performing stocks successful the semiconductor abstraction successful 2025, with a summation of 239%. It's grabbing headlines yet again successful 2026 due to the fact that it has already risen a further 29% successful January alone. The question investors person to inquire themselves now, though, is however overmuch longer this unthinkable rally tin run.

Graphics processing units (GPUs) similar those supplied by Nvidia are the superior parallel processing chips utilized to powerfulness AI improvement and inference. High-bandwidth representation (HBM) successful adjacent proximity to those chips unlocks maximum processing speeds from ample GPU clusters by keeping the information flowing to them seamlessly. Without it, GPUs would person to perpetually intermission successful their workloads portion they hold to person much information, which is acold from perfect with AI software.

Micron's HBM3E information halfway spot provides 50% much capableness than the contention portion consuming 30% little energy. As a result, some Nvidia and Advanced Micro Devices are embedding it successful their latest GPUs.

And Micron is preparing to ramp up accumulation of its caller HBM4E chip, which it says volition amended capableness and vigor ratio by a further 60% and 20%, respectively. The company's full 2026 proviso of those chips is already sold out.

Micron CEO Sanjay Mehrotra predicts the marketplace for information halfway HBM volition triple successful worth by 2028, to implicit $100 cardinal annually. This is the company's biggest fiscal opportunity, but determination is besides a batch of wealth to beryllium made successful representation chips for user devices arsenic a greater stock of AI workloads gradually shifts to smartphones and idiosyncratic computers.

During Micron's fiscal 2026 archetypal quarter, which ended Nov. 27, 59% of its customers' flagship smartphones needed astatine slightest 12 gigabytes of representation to enactment AI applications. That percent was much than doubly what it was successful the prior-year period.

Micron's full gross soared 56% twelvemonth implicit twelvemonth to a grounds $13.6 cardinal during its fiscal archetypal quarter. The company's unreality representation conception (where it reports its information halfway HBM sales) was liable for astir $5.3 cardinal of that -- doubly arsenic overmuch gross arsenic successful the prior-year period.