Micron Technology Sees Explosive Growth Amid AI Demand
Micron Technology (NASDAQ: MU) reported a record $41.4 billion in revenue for its fiscal Q3 2026, ending May 28, marking a 346% increase from the previous year. The driving force behind this surge is its high-bandwidth memory (HBM) for data centers, critical to powering artificial intelligence (AI) applications. The demand for Micron’s HBM has outstripped supply, contributing to a substantial jump in earnings, which rose 1,368% year over year to $24.67 per share.
However, the stock has experienced a significant decline, falling 30% from a recent peak of $1,213 to close at $848 on July 17. Analysts highlight that while Micron’s P/E ratio is 19.2—much lower than the Nasdaq-100’s 33.4—the increase in memory supply may soon outpace demand, potentially affecting future earnings and valuations. UBS Group reported that 60% of businesses are reducing AI spending, posing longer-term challenges for the semiconductor market.
Looking forward, Micron anticipates the HBM market will triple from $35 billion to $100 billion by 2028. Nonetheless, industry experts caution that the rapid growth may be tempered by increased supply and uncertain demand dynamics as companies reassess their AI investments.
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