Home / Business and Economy / Micron Stock: AI Boom Defies Cycles?
Micron Stock: AI Boom Defies Cycles?
12 Oct
Summary
- Micron stock dropped 18% since its record high in June 2026.
- Generative AI's demand for HBM chips is boosting Micron's growth.
- Analysts predict strong revenue and EPS growth through fiscal 2028.
Micron Technology's stock, which reached a record high of $1,255 per share on June 25, 2026, has since declined by 18% to approximately $1,030. Historically, Micron has been subject to boom-and-bust cycles common in the memory chip market. Past decades saw significant stock drawdowns, such as 73% from 2014 to 2016, as production gluts followed periods of high demand. Investors may be tempted to view the current 18% drop as the start of another steep pullback.
However, the company's trajectory may differ this time due to the burgeoning generative AI market. Since 2024, AI has driven a massive demand for high-bandwidth memory (HBM) chips and NAND-powered solid-state drives. This demand has throttled Micron's production of standard DRAM chips for other markets, creating a widespread price increase and potentially lengthening the current growth cycle.
Analysts anticipate substantial growth for Micron, projecting revenue and earnings per share to increase at compound annual growth rates of 55% and 67%, respectively, from fiscal 2026 to fiscal 2028. Based on these forecasts, Micron's stock appears undervalued at six times its current earnings. While a future pullback is possible, AI catalysts could significantly elevate its stock performance before supply fully meets demand.
