Home / Business and Economy / AI Memory Boom: Micron's Stock Soars
AI Memory Boom: Micron's Stock Soars
6 Oct
Summary
- Micron's AI-driven growth results in record revenue of $133.2 billion in fiscal 2026.
- Gross margins expanded significantly, reaching 81.1% due to increased AI memory demand.
- Morgan Stanley maintains an 'Overweight' rating and a $1,200 price target for MU stock.
Artificial intelligence is reshaping the traditional memory chip market, with Micron (MU) at the forefront of this transformation. The company has reported remarkable financial results, driven by the escalating need for memory in AI models.
Micron's Chairman and CEO Sanjay Mehrotra highlighted that AI platforms are enhanced by greater and faster memory. This demand translated into a record fiscal 2026 revenue of $133.2 billion, a 256% increase from the previous year. Gross margin expanded to 81.1%, and earnings per share soared by 811% to $75.52.
Even more impressive, the fiscal fourth quarter of 2026, ending in August, saw record revenue of $54.2 billion, up 379% year-over-year. DRAM revenue accounted for $39.8 billion, and data center SSD revenue neared $10 billion. Gross margin reached 87%, with free cash flow at $33.2 billion.
Looking ahead, Micron anticipates fiscal first quarter revenue of $61.5 billion and earnings of $38.15 per share, surpassing Wall Street expectations. Morgan Stanley analyst Joseph Moore reaffirmed an 'Overweight' rating and a $1,200 price target, reflecting confidence in Micron's sustained performance in the AI memory sector.
