Micron Technology (MU) delivered an impressive fiscal Q2 2026 earnings report, surpassing Wall Street’s expectations with revenue of $23.9 billion and earnings per share of $12.20, both significantly above prior guidance. The company’s revenue tripled year over year, fueled by strong demand and pricing for memory products, particularly driven by AI-related data center needs. Despite this stellar performance, Micron’s stock dipped, likely due to concerns about sustaining such rapid growth after a remarkable 277% rise over the past year.
The ongoing tight supply of DRAM and NAND chips, with prices soaring by up to 79% sequentially, suggests that Micron’s growth trajectory remains robust. The company anticipates $33.5 billion in revenue for the current quarter, far exceeding consensus estimates, and earnings guidance points to a potential tenfold year-over-year increase. Analysts now expect Micron to end fiscal 2026 with earnings of $57.76 per share, indicating substantial upside potential.
Investors should consider this post-earnings dip as a buying opportunity, as Micron’s growth prospects appear underestimated. With a median price target of $550, the stock could see significant appreciation in the coming year, driven by sustained demand in the memory sector.
Source: fool.com