Micron Technology’s high-bandwidth memory chips are crucial for powering the world’s top artificial intelligence (AI) chips made by Nvidia and AMD. The company’s data center revenue doubled in the last quarter, with potential for further growth. Despite a 239% increase in 2025 and a 29% rise in 2026, the stock may still be undervalued. Micron is a key supplier of memory and storage chips for data centers, PCs, and smartphones, where AI workloads are expanding. The company’s innovative HBM3E and upcoming HBM4E chips are in high demand, driving strong financial performance and leading to impressive revenue projections.

Micron’s revenue soared 56% to a record $13.6 billion in the first quarter of fiscal 2026, driven by strong demand for its cloud memory segment, particularly its data center HBM sales. The company’s incredible pricing power due to HBM shortages is boosting profits, with earnings per share jumping 175% to $4.60. Micron’s guidance predicts a 132% revenue increase in the next quarter, with earnings expected to reach $8.19 per share. The stock’s recent gains reflect optimism about its earnings growth potential in the near future.

The semiconductor industry’s shift towards annual chip upgrades for AI development could benefit Micron, whose memory chips are essential for GPUs from major players like Nvidia and AMD. Micron’s stock is trading at a lower price-to-earnings ratio compared to Nvidia, with strong growth potential supported by Wall Street’s projected earnings of $33.17 per share in fiscal 2026. While Micron’s exceptional growth may not be sustainable long-term, it is positioned for continued success in the AI-driven market. Investors should consider Micron’s promising outlook and potential for market-beating returns.

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