Is Micron Technology Stock Worth Buying After Its 239% Surge in 2025?

The memory chip sector delivered outstanding returns last year, with Micron Technology, Inc. MU emerging as one of the standout performers. The company’s shares climbed 239.1% throughout 2025, substantially outpacing the broader market’s 18.7% advance. This impressive appreciation reflects a significant shift in how investors view memory chip manufacturers, particularly those riding the artificial intelligence wave. Alongside Micron Technology, the memory and storage ecosystem saw widespread gains, with Western Digital Corporation WDC, Seagate Technology Holdings Plc STX, and Sandisk Corporation SNDK posting annual returns of 219.1%, 188.9%, and 388.4%, respectively. Yet the question remains: does Micron Technology represent a compelling opportunity as we enter 2026, or has much of the upside already been priced in?

Fiscal 2026 Financials Paint an Impressive Picture

The most convincing argument for Micron Technology’s continued appeal lies in its recent quarterly performance. The company commenced fiscal 2026 with results that exceeded Wall Street expectations across all key metrics. Revenue surged 57% year-on-year to reach $13.64 billion, while non-GAAP earnings per share jumped 167% to $4.78. Both figures significantly outdistanced consensus forecasts, beating revenue expectations by 7.26% and EPS estimates by 22.25%.

Profitability metrics reveal an even more compelling story. Non-GAAP gross margin expanded dramatically to 56.8%, up from 39.5% in the prior-year period—a testament to favorable pricing dynamics and improved manufacturing efficiency. Operating income nearly tripled to $6.42 billion from $2.39 billion, while the non-GAAP operating margin climbed to 47%, compared with 27.5% a year earlier. This margin expansion demonstrates Micron Technology’s capacity to convert revenue growth into genuine bottom-line improvement.

Wall Street remains optimistic about the trajectory ahead. For the full fiscal 2026 year, analysts project revenues will grow 89.3% and earnings per share will surge 278.3% from the prior year. Perhaps most notably, the EPS consensus has been raised by 80.6% over the past month, reflecting growing confidence in the company’s execution.

Riding Multiple Structural Tailwinds

Micron Technology’s competitive position extends well beyond cyclical memory demand improvements. The company benefits from several durable industry trends that should support growth well into the foreseeable future.

Artificial Intelligence Infrastructure Acceleration: As enterprise data centers and cloud platforms build out their AI computing capabilities, the appetite for advanced memory solutions continues to accelerate. Micron Technology’s DRAM and NAND technologies remain essential components of this build-out, and the company’s ongoing investments in next-generation architectures ensure it can meet evolving performance requirements. The high-bandwidth memory category represents a particularly attractive segment, where Micron Technology’s HBM3E products have gained meaningful traction. These chips deliver the bandwidth and power efficiency that GPU-intensive AI workloads demand.

Supply Chain Integration: A milestone announcement late in 2025 confirmed Micron Technology’s role as a core supplier of high-bandwidth memory for NVIDIA’s latest graphics processors, including the GeForce RTX 50 Blackwell architecture. This partnership underscores deep integration into the AI supply chain and provides multi-year visibility into demand. The company’s under-construction HBM advanced packaging facility in Singapore, expected to commence operations in 2026 with additional capacity scaling in 2027, represents tangible evidence of commitment to capitalizing on this opportunity.

Portfolio Diversification: By systematically redirecting focus away from the volatile consumer electronics segment toward enterprise IT, automotive, and industrial Internet of Things applications, Micron Technology has constructed a more resilient revenue mix. This strategic positioning provides better downside protection during semiconductor industry cyclical downturns while still capturing secular growth drivers.

Valuation Remains Compelling Relative to Growth

Despite the dramatic appreciation witnessed last year, Micron Technology stock trades at a forward 12-month price-to-earnings ratio of just 9.12, representing a substantial discount to the S&P 500 average of 23.11. This valuation gap persists even when comparing Micron Technology to direct competitors in the memory and storage markets—Seagate Technology, Western Digital, and Sandisk trade at multiples of 22.21, 18.89, and 13.14, respectively. Given Micron Technology’s superior positioning within high-growth AI and data center segments, this relative discount becomes even more noteworthy.

For long-term investors, the combination of robust earnings growth trajectory and below-market valuation multiples presents a rare confluence of factors. Micron Technology trades like a mature, steady-state business while delivering growth rates typically associated with emerging technology leaders.

The Investment Verdict

Micron Technology enters 2026 with several powerful catalysts already visible on the horizon. The company’s fundamentals remain solid despite macroeconomic headwinds and geopolitical uncertainties that have troubled other industrial sectors. Strategic positioning within artificial intelligence infrastructure, validated supply chain partnerships, and a transition toward higher-margin businesses all suggest the company can sustain its momentum.

The current valuation environment—where the company trades at less than half the market’s average valuation multiple despite mid-double-digit earnings growth—warrants accumulation by long-term oriented investors. Micron Technology carries a Zacks Rank of #1 (Strong Buy), reflecting the analytical consensus.

For those seeking exposure to the artificial intelligence hardware ecosystem without overpaying for growth, Micron Technology represents a worthwhile consideration for 2026 portfolio additions.