Micron Stock Is Up Over 260%. Here's Why It Could Go Even Higher

• AI-related request for Micron's high-bandwidth representation (HBM) is accelerating.

• This beardown demand, combined with proviso constraints, could alteration Micron to astir quadruple its net successful 2 years.

• Although the statement terms people for Micron is bearish, the tech banal should person important country to run.

• 10 stocks we similar amended than Micron Technology ›

Many investors person made immense profits from artificial quality (AI) stocks implicit the past 12 months. Nvidia's (NASDAQ: NVDA) shares person surged much than 25%. Google genitor Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is up adjacent to 70%. Palantir Technologies' (NASDAQ: PLTR) stock terms has much than doubled.

But those AI stocks don't clasp a candle to Micron Technology (NASDAQ: MU). This tech banal is up much than 260% implicit the past 12 months. I deliberation it could spell adjacent higher.

AI isn't conscionable moving successful information centers. It's moving connected borderline devices specified arsenic smartphones and astute glasses. It's moving successful cars and trucks. And it's becoming adjacent much pervasive.

Micron CEO Sanjay Mehrotra stated successful an interrogation earlier this period with CNBC's Jim Cramer, "AI-driven request is accelerating. It is real. It is here, and we request much and much representation to code that demand."

The past portion of Mehrotra's connection is critical. Developers of ample connection models (LLMs) are rapidly expanding the discourse windows (the magnitude of information processed astatine 1 time) for these systems. The greater the discourse window, the much representation is required. And not conscionable immoderate representation works. LLMs request high-bandwidth representation (HBM).

Mehrotra said successful Micron's fiscal 2026 first-quarter net telephone successful December, "Memory is present indispensable to AI cognitive functions, fundamentally altering its relation from a strategy constituent to a strategical plus that dictates merchandise show from information halfway to the edge." If discourse is king for AI systems, HBM is the kingmaker.

Micron projects that the HBM full addressable marketplace volition rapidly grow from astir $35 cardinal past twelvemonth to astir $100 cardinal successful 2028, with a compound yearly maturation complaint of astir 40%. Previously, the institution didn't expect the HBM marketplace to scope $100 cardinal until 2030.

However, HBM proviso astir apt won't support up with demand. Mehrotra told analysts successful Micron's Q1 net telephone that beardown request and proviso constraints volition apt "persist beyond calendar 2026."

The proviso request imbalance for HBM successful the AI information halfway marketplace could persist for rather immoderate time. Mehrotra said successful the Q1 update, "We judge the aggregate manufacture proviso volition stay substantially abbreviated of the request for the foreseeable future." He besides pointed to robust longer-term request trends for representation successful aerospace and defense, borderline networking, mill automation, humanoid robotics, and video surveillance.