Over the last year, Micron Technology (NASDAQ: MU) has emerged as one of the most compelling stories in the artificial intelligence (AI) semiconductor landscape. Following its 162% surge in just the last six months, Micron shares now hover around $440.
The question smart investors are asking is whether this rise is a byproduct of a temporary boom or the beginning of a structural growth rally. Over the next three years, I’m forecasting Micron stock to soar even higher. Read on to find out why.
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AI hyperscalers are deploying millions of clusters of graphics processing units (GPUs) across their data centers. These structures consume high-bandwidth memory (HBM) for training and inference of generative AI models.
Micron’s recent ascent is fueled by explosive demand for these high-performance memory solutions — supported by the $700 billion AI infrastructure buildout. The company’s HBM3E and upcoming HBM4 products are already sold out for 2026 — allowing the company to command premium pricing and widen the profit margins across its DRAM and NAND chip suites.
As big tech continues allocating infrastructure budgets toward additional capacity solutions across memory and storage, Micron remains in a position to accelerate both revenue and earnings over the coming years.
In the past, memory cycles have been highly cyclical as they relied heavily on device upgrades from consumers and enterprises. Today’s AI revolution is changing this narrative, though.
Trends in digitization, 5G networks, and cloud storage were not as robust during prior memory cycles. But with the introduction of next-generation services across robotics, agentic AI, and autonomous systems, AI models are scaling at an unprecedented speed.
As inference workloads evolve from pilots to production, the need for HBM becomes even more critical. Against this backdrop, it’s easy to justify the HBM market’s 40% annual growth rate — estimated to reach $100 billion by 2028.
In fiscal 2025 (which ended Aug. 28), Micron generated $7.59 in earnings per share (EPS). Through the first six months of fiscal 2026, the company’s EPS has already risen by more than twofold — coming in at $16.68. What’s even better is that management guided for even higher earnings of $18.90 for fiscal Q3.
