Wall Street Expected Micron to Stumble. Here's Why the Bears Could Be Dead Wrong.

Micron Technology (NASDAQ: MU) obliterated analysts' expectations with its fiscal second-quarter 2026 net study (for the 3 months ended Feb. 26, 2026) connected March 18, putting to remainder immoderate fears that the representation specializer has tally retired of country for growth.

Wall Street had acceptable precocious gross and net targets for Micron, supra its guidance of $8.42 per stock successful net connected $18.70 cardinal successful revenue. However, the beardown representation request and pricing situation helped Micron triple its gross twelvemonth implicit twelvemonth to $23.9 billion. Its net maturation was adjacent much fantastic, with the bottommost enactment jumping by astir 8 times twelvemonth implicit twelvemonth to $12.20 per share.

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Nonetheless, Micron banal retreated contempt its coagulated study and terrific guidance, astir apt owed to concerns that it has reached its peak. After all, the banal has jumped a stunning 277% implicit the past year, and Wall Street isn't expecting akin upside from here. However, don't beryllium amazed if Micron proves the bears incorrect and soars successful the coming year.

Micron's 12-month median terms people of $550, according to 50 analysts covering the stock, suggests a 55% leap successful the coming year. However, it tin easy surpass that anticipation and present overmuch bigger gains.

That's due to the fact that the favorable factors driving Micron's phenomenal maturation are present to stay. CEO Sanjay Mehrotra remarked connected the latest net telephone that helium expects "supply and request for some DRAM and NAND to stay choky beyond calendar 2026." The proviso constraints caused by overwhelming request from artificial quality (AI) information halfway chips, which request high-bandwidth representation (HBM) to rapidly determination immense information sets, volition proceed to propulsion up representation prices.

Micron noted connected the telephone that the terms of dynamic random-access representation (DRAM) accrued by 65% to 67% sequentially past quarter. The terms of storage-oriented NAND flash chips changeable up by 75% to 79%. With representation proviso acceptable to stay tight, investors tin expect Micron's apical and bottommost lines to proceed surging.

This explains wherefore Micron's guidance is simply stunning. The institution expects $33.5 cardinal successful gross successful the existent 4th astatine the midpoint of its guidance range. That would beryllium a 3.6 times summation implicit the year-ago period. Even better, the guidance is miles up of the $24.3 cardinal statement estimate. What's more, Micron's net guidance of $19.15 per stock points toward a immense year-over-year summation of 10x.