Micron Earnings Face High Expectations as Its Stock Keeps Rising

(Bloomberg) -- Soaring prices for representation chips person made Micron Technology Inc. 1 of the standout stocks of 2026, and its net aft the adjacent connected Wednesday volition springiness clues connected whether the rally is sustainable.

Micron shares person soared astir 65% to commencement the year, among the champion performers successful the S&P 500 Index, aft jumping 239% successful 2025. The biggest US shaper of representation chips is benefiting from dense spending connected artificial quality computing that’s driving request for representation and retention components, arsenic are high-flying peers Sandisk Corp. and Western Digital Corp.

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Investors are optimistic that elevated prices for representation chips volition bolster Micron’s quarterly results and forecasts. But determination are questions astir however agelong the bully times volition past and whether Micron tin unrecorded up to expectations.

“This pricing situation won’t past forever, but each signs are pointing to choky proviso this twelvemonth and sold-out capableness adjacent year, truthful investors tin instrumentality immoderate comfortableness that we’re not adjacent to the highest yet,” said Hendi Susanto, a portfolio manager astatine Gabelli Funds, which has astir $35 cardinal successful assets and holds Micron shares. “Because prices look sustainable successful the adjacent word and the banal looks beauteous cheap, its hard to spot important downside. The biggest hazard is astir apt precocious expectations.”

Shares gained 0.6% soon aft the marketplace opened connected Wednesday.

While different AI infrastructure stocks similar Nvidia Corp. person stalled retired amid concerns astir the sustainability of spending and peaking gross growth, representation and retention companies proceed to climb. Part of that is owed to the higher prices they’re capable to bid arsenic proviso remains constrained. An scale of spot prices for the dynamic random entree representation chips that Micron makes is up much than 500% since the extremity of September.

Micron shares closed astatine a grounds $461.69 connected Tuesday, bringing the company’s marketplace worth to astir $520 billion, up from $100 cardinal astatine the extremity of 2024.

The Boise, Idaho-based chipmaker is expected to present fiscal second-quarter nett income of $10.1 cardinal connected gross of $19.6 billion, according to the mean of expert estimates compiled by Bloomberg. That would correspond maturation of 540% and 144%, respectively, from a twelvemonth ago.