Micron Technology, Inc. has experienced impressive growth, with its share value tripling in 2025, outpacing notable competitors such as NVIDIA Corporation. Investors still have an opportunity to join in on Micron’s upward trajectory, particularly given the company’s attractive valuation and strong market fundamentals.
The company’s success has been largely driven by a surge in demand for its high-bandwidth memory (HBM) chips, which are becoming increasingly essential for handling large volume workloads while ensuring power efficiency. Recent financial results reflect this trend, as Micron reported first-quarter fiscal 2026 revenues of $13.64 billion—a 56% increase year-over-year—exceeding Wall Street’s projections of $12.88 billion. Notably, Micron’s cloud memory business unit saw remarkable sales growth of 99.5%, reaching $5.28 billion compared to the same period last year. This robust revenue growth has led to a reported non-GAAP net income of $5.48 billion, surpassing analyst expectations.
The need for Micron’s HBM chips is poised to rise further, driven by ongoing expansion of artificial intelligence (AI) infrastructure among hyperscalers and data center operators. Sanjay Mehrotra, Micron’s CEO, noted that supply constraints are anticipated to persist, creating a supply-demand imbalance that could lead to higher prices, thereby enhancing Micron’s profitability in the near future.
The total addressable market for HBM is projected to grow at a compound annual growth rate (CAGR) of around 40%, expanding from $35 billion in 2025 to almost $100 billion by 2028. In response to this growth, Micron forecasts its financial performance to continue strengthening, with projected second-quarter fiscal 2026 revenues expected to range between $18.3 billion and $19.1 billion.
Micron’s positioning amid the relentless demand for HBM chips places it in a favorable position for further growth. The combination of supply constraints and an expanding market is likely to enhance the company’s profit margins.
Interestingly, the market may not fully appreciate Micron’s growth potential; its forward price-to-earnings (P/E) ratio stands at 11.76, significantly lower than the average of 19.33 for the Computer-Integrated Systems industry. This appealing valuation, coupled with Micron’s high growth potential and solid operating margins, creates a compelling investment opportunity for savvy investors looking to capitalize on the advancing technology landscape.