Micron Technology Has Started 2026 With a Bang. The Stock Could Still Triple This Year

Shares of Micron Technology (NASDAQ: MU) banal person roared incredibly higher successful the past year, rising a stunning 247% arsenic of this writing. The representation specializer started 2026 connected an auspicious note, jumping much than 10.5% connected Jan. 2. Let's spot wherefore that was the lawsuit and find retired wherefore this semiconductor banal is poised to present phenomenal gains to investors successful the caller year.

Micron's latest leap is the effect of affirmative sum by Bernstein SocGen Group expert Mark Li. The expert has accrued his Micron terms people to $330 from the anterior speechmaking of $270, standing the banal astatine "outperform."

Li's upgrade is based connected the favorable demand-supply dynamics successful the representation market. The prices of representation chips specified arsenic dynamic random-access representation (DRAM) and NAND flash retention person been rising successful caller quarters. Manufacturers similar Micron person been incapable to nutrient capable chips to conscionable the end-market request from information centers, which request immense amounts of compute and retention representation to process AI workloads.

The proviso shortage has led to a spike successful prices, with the Bernstein expert forecasting a 20% to 25% sequential leap successful the terms of DRAM successful the existent quarter. Micron's guidance for the ongoing 2nd 4th of fiscal 2026 explains Li's bullishness. The institution anticipates non-GAAP net to leap by a whopping 440% twelvemonth implicit twelvemonth successful the existent 4th (which volition extremity successful February) to $8.42 per share.

That's importantly higher than the 167% year-over-year maturation successful net than Micron clocked successful the erstwhile quarter. Even better, Li estimates that DRAM prices are connected way to proceed improving passim the year, indicating that Micron could prolong terrific bottom-line maturation going forward.

One interest that whitethorn measurement connected investors' minds is whether Micron is capable to unrecorded up to its lofty outlook. However, the institution has sold retired its disposable capableness of the high-bandwidth representation (HBM) chips that are utilized successful AI information halfway chips. Responding to an expert query connected the December 2025 net call, Micron CEO Sanjay Mehrotra remarked:

In our prepared remarks that our HBM for 2026 is sold retired successful presumption of measurement and our negotiations with customers person been completed for calendar twelvemonth 2026 for measurement arsenic good arsenic pricing.