Micron Technology (MU) has become the most searched stock on Zacks.com, trailing only Nvidia (NVDA), as a prolonged memory chip shortage fuels demand for its products amid the artificial intelligence hardware boom. The company’s stock more than tripled in the past year and has risen over 40% in 2026 alone, even as it trades at a valuation analysts deem compelling given its accelerating earnings growth.
The surge in demand stems from the critical role Micron plays in supplying essential memory components for AI systems. AI chips from Nvidia, Advanced Micro Devices (AMD), and Alphabet (GOOGL) all require substantial amounts of high-bandwidth memory (HBM), currently the most constrained memory type globally. Micron is the world’s first and only memory company shipping both HBM3E and SOCAMM products for AI servers, according to a company announcement.
Beyond HBM, Micron’s server-class DRAM, DDR5, and broader DRAM portfolio are experiencing explosive demand. DDR5, the latest generation of dynamic random-access memory, is particularly crucial as it powers modern servers, PCs, and AI systems. The total addressable market for AI accelerators is expected to reach $604 billion by 2033, growing at a compound annual growth rate of 16%, according to Bloomberg Intelligence.
Micron’s financial performance reflects this heightened demand. Fiscal year 2025 sales reached a record $37.38 billion, with annual earnings near multi-year highs at $8.29 per share. Wall Street anticipates further gains, projecting a 300% surge in earnings per share for fiscal year 2026, reaching $33.22, followed by another 35% increase to $44.95 in fiscal year 2027.
Analysts note that Micron’s current price-to-earnings ratio of 12X remains attractive compared to other high-growth tech stocks and the broader S&P 500. It also trades at a discount to peers like Sandisk Corporation and Western Digital, which have forward earnings multiples of 23X and 31X, respectively. Since being added to the Zacks Rank #1 (Strong Buy) list in August 2025, Micron’s stock has increased by 865%.
The company’s ability to command premium pricing, driven by the favorable supply and demand dynamics, is expected to support continued stock momentum. Earnings estimates for both fiscal years 2026 and 2027 have been revised upwards significantly in recent months, increasing 78% and 91% respectively over the last 60 days. Year-over-year revisions display even more dramatic increases, with FY26 and FY27 estimates skyrocketing 207% and 490%, respectively.
