Micron Technology (NASDAQ: MU) is witnessing an impressive stock surge in 2026, with shares climbing an astounding 174% as of now.
A parabolic jump indicates a rapid increase in stock price over a brief period, much like the upward curve of a parabola. The sharp rise in memory prices is driving this surge. Investors might find it encouraging that the stock could see even higher numbers when it releases its fiscal 2026 third-quarter results on June 24. It wouldn’t be surprising if the stock rallies further after that report.
Memory prices are escalating quickly, fueled by soaring demand for dynamic random access memory (DRAM) and NAND flash memory from AI data centers. These data centers require substantial amounts of fast memory for training and inference tasks, leading to a noticeable shortage of memory chips.
Consequently, memory manufacturers are focusing on producing high-bandwidth memory (HBM), also used in AI accelerators. Creating one gigabyte of HBM requires three times the wafer capacity of standard DRAM, which is causing a shortage in general-purpose memory needed for smartphones and PCs.
Additionally, it’s anticipated that hard disk drive (HDD) lead times could extend until late 2027 due to the vast storage needs in AI data centers, which is affecting supply in the NAND flash market as these centers secure enterprise solid-state drives (SSDs).
As a result, the steep increases in DRAM and NAND prices are expected to persist. TrendForce projects DRAM prices might jump by 58% to 63% in the second quarter of 2026, following an estimated 98% rise in the first quarter. Meanwhile, the first quarter revenue from the global NAND flash market was 3.5 times that of the previous year, with Gartner forecasting a staggering 234% increase in NAND flash prices this year.
All these factors suggest that Micron could exceed Wall Street’s expectations with its forthcoming results.
Micron has consistently outperformed Wall Street’s earnings estimates for four consecutive quarters. The company anticipates third-quarter sales to be around $33.5 billion, a level that would be 3.6 times greater than the same period last year.
Furthermore, non-GAAP earnings per share are expected to rise significantly year over year to $19.15. With memory prices having surged in the first half of 2026 and a continued outlook of shortages into the latter part of the decade, Micron is likely to announce stronger-than-anticipated results and guidance on June 24.
It seems Micron is currently trading at a forward P/E of just 6x, suggesting that its growth potential might not yet be fully reflected in its stock price. Growth-focused investors may want to consider buying Micron stock ahead of the quarterly report, as the remarkable rally could face some challenges post-June 24.
If you’re thinking about investing in Micron Technology stock, there are a few important points to mull over.
The analyst team at Motley Fool Stock Advisor has spotlighted other stocks they believe could yield impressive returns, excluding Micron Technology from their top ten picks.
This outlook is essential, especially when you consider that companies like Netflix and Nvidia have shown remarkable growth since their early recommendations. The total average return from Stock Advisor stands at 941%, significantly higher than the S&P 500’s 211%, demonstrating a marked market outperformance.
