Micron Technology (MU) Stock Climbs Near $420 Amid AI Memory Boom

Micron Technology Inc.'s stock has surged in early 2026, trading near $420 after a strong year-to-date rally fueled by explosive demand for high-bandwidth memory (HBM) in artificial intelligence data centers, record fiscal first-quarter results, and full commitment of its 2026 HBM production under multi-year contracts.

As of February 24, 2026, Micron (NASDAQ: MU) closed at $418.01, down 0.70% on the day but up significantly from earlier levels, with intraday trading ranging from $411.28 to $436.27 amid volume of over 33 million shares. The shares have gained approximately 49% year-to-date in 2026, following a massive 240% rise in 2025, and approached a record high of $455.50 earlier in the year before a modest pullback. The 52-week range spans a low of $61.54 to that peak, reflecting the memory chipmaker's transformation into a key AI infrastructure play.

The momentum stems from accelerating AI-driven demand for advanced memory solutions. Micron has prioritized HBM, essential for powering graphics processing units in AI accelerators from Nvidia and others. In mid-February 2026, the company announced it had entered volume production of its next-generation HBM4 a quarter ahead of prior guidance, with customer shipments ramping in calendar Q1 2026. Yields remain on track, and all 2026 HBM capacity is fully sold out under long-term agreements, providing rare visibility and pricing power in a traditionally cyclical sector.

This sold-out status underscores a structural supply-demand imbalance. Industry estimates project HBM demand growing 70% year-over-year in 2026, with HBM consuming 23% of total DRAM wafer output—up from 19% in 2025. Micron executives have described the disconnect as the most significant in decades, with lean inventories and customers securing only a fraction of needs, supporting sustained high pricing and margins.

Fiscal Q1 2026 results, reported December 17, 2025, set multiple records and reinforced the narrative. Revenue reached $13.64 billion—up 57% year-over-year and 21% sequentially—surpassing expectations. Non-GAAP net income hit $5.48 billion, or $4.78 per diluted share, with gross margins expanding to 56.8%. Free cash flow also reached record levels. Cloud memory revenue doubled year-over-year, while overall DRAM revenue grew 69% and NAND 22%.

Management guided for continued strength, projecting DRAM and NAND bit shipments to rise in 2026 amid disciplined pricing and favorable mix. Analysts forecast fiscal 2026 earnings of around $33 per share—more than 330% growth—followed by another 38-40% increase to $45+ in fiscal 2027. Some projections suggest potential for $500+ stock prices by year-end if the AI supercycle persists.

Micron's strategic focus includes aggressive capacity expansion. The company has committed up to $200 billion toward new facilities and technology to meet demand, including advancements in HBM4 that offer higher bandwidth and efficiency for next-generation AI workloads. Partnerships with hyperscalers and GPU leaders lock in multi-year commitments, reducing cyclical risks.

Wall Street remains bullish. Consensus among analysts rates MU a Buy, with average 12-month price targets implying substantial upside from current levels. Optimism centers on the shift from cyclical volatility to more predictable, high-margin AI revenue streams. However, risks include potential oversupply if capacity ramps too aggressively, competition from Samsung and SK Hynix, and broader macro pressures like tariffs or AI spending slowdowns.

The next major catalyst arrives March 18, 2026, when Micron reports fiscal Q2 results. Guidance for that quarter includes EPS of $8.22-$8.62, with expectations for further gross margin expansion toward 68%. Positive execution on HBM ramps and demand trends could propel shares higher; any signs of softening might introduce volatility.

Micron, a leading supplier of DRAM, NAND, and NOR flash memory, has evolved into a central player in the AI era. Its early HBM4 success, sold-out capacity, and record financials position it to capitalize on sustained data center investments. As AI infrastructure spending accelerates—potentially reaching hundreds of billions annually—Micron's trajectory suggests the memory boom may endure beyond traditional cycles, supporting long-term growth despite near-term fluctuations.

Investors view current levels as attractive given earnings momentum, though the stock's high-beta nature ties performance closely to AI adoption and supply discipline. With fiscal 2026 shaping up as a banner year, Micron stands poised to benefit from the ongoing digital transformation.