Micron Technology shares have surged by an impressive 250% over the past year, fueled by a booming demand for memory chips driven largely by advancements in artificial intelligence. As the semiconductor company continues to show strong financial performance, many analysts believe it could represent one of the best value investments in the tech sector for 2026.
The Global X Artificial Intelligence & Technology ETF, the largest exchange-traded fund focused on AI, demonstrated a notable 30% increase in 2025. However, the sector started the year facing challenges, including trade tensions stemming from President Donald Trump’s tariff-induced trade wars and concerns over substantial spending on AI infrastructure. These anxieties intensified after Chinese tech startup DeepSeek claimed it could train its large language model at a fraction of the cost incurred by larger companies such as OpenAI.
Despite the market’s unease, several leading AI stocks—including Nvidia, Palantir, Broadcom, and Snowflake—are now trading at elevated sales and earnings multiples. In stark contrast, Micron Technology, which has risen 250% in the last year, is currently available at an attractive valuation, presenting a unique buying opportunity.
Micron reported a remarkable 57% year-over-year revenue growth and a staggering 167% increase in non-GAAP earnings in its latest quarter. Its trailing earnings multiple stands at 27, a figure that many analysts consider a bargain given its rapid growth trajectory. The company anticipates an even more robust performance in the current quarter, projecting a 132% jump in revenue to $18.7 billion, with adjusted earnings expected to increase more than fivefold.
At present, Micron is trading at approximately $285.41, reflecting a day’s change of -2.47%. With a market capitalization of $321 billion, the company reported a 52-week range of $61.54 to $298.83 and a gross margin of 45.56%. Consensus estimates suggest earnings could nearly quadruple in the next fiscal year, reaching $32.14 per share. Yet, Micron’s forward earnings multiple is only 9, significantly lower than the Nasdaq-100 index’s forward price-to-earnings ratio of 26.
As the market continues to reassess Micron’s growth potential, there is a strong possibility that its stock could see substantial appreciation. If the company were to trade at a forward P/E ratio more in line with industry averages, significant upward momentum in its stock price could follow, especially as Micron is well-positioned to meet Wall Street’s expectations.
Memory Market Dynamics
The demand for memory chips is currently outstripping supply, largely due to the extensive use of high-bandwidth memory in AI accelerator chips, such as graphics processing units. This has resulted in a shortage of memory chips used in consumer electronics, such as smartphones and personal computers, leading to a significant increase in memory prices.
Market analysts predict that memory prices will continue to rise in 2026, with server memory prices potentially doubling due to increased demand for high-bandwidth memory destined for data center applications. Meanwhile, memory manufacturers like Micron are likely to manage their production capacities to maintain higher price levels.
Research firm IDC forecasts that memory supply growth will only reach 16% to 17% in 2026, a rate that falls below historical averages. In contrast, the high-bandwidth memory market is projected to expand at an annualized growth rate of 42% through 2033.
With AI data center spending expected to reach a staggering $1.2 trillion by 2030, Micron’s stock could very well experience continued growth beyond 2026. The company’s current low valuation, paired with its substantial growth prospects in a rapidly evolving market, suggests that investing in Micron now could be a strategic move for long-term investors.
