Micron Technology (NASDAQ: MU) started the year incredibly hot, rising 325% for the year at its peak. However, it cooled off after July arrived, and the stock has sold off a fair bit. It’s now down over 20% from its all-time high, but I think that will change after Sept. 30.
Why? Micron reports results for its fiscal 2026’s fourth quarter on Sept. 30, and I think it could be the news that it needs to start a major rally. Additionally, I think it could surge past previous all-time highs and end 2026 on a high note. If you don’t own any Micron shares now, it could be the perfect time to buy.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Micron is cheap heading into earnings
Micron is a memory chip fabrication company and makes both NAND and DRAM memory. Both styles of memory are in high demand as AI data centers take up all available capacity. In fact, there is too much demand and not enough supply, which has caused memory chip prices to surge. This has allowed Micron and its peers to make a fortune in recent quarters, and there’s plenty more where that came from for Micron.
During its fiscal Q3 (ended May 28), Micron’s revenue surged from $9.3 billion in 2025 to $41.5 billion in 2026. For Q4, Micron gave guidance for revenue of $50 billion; Wall Street analysts expect it to report revenue of $50.8 billion. That would indicate nearly 350% year-over-year revenue growth, which is nothing short of incredible.
However, this isn’t the peak for Micron. For fiscal 2027, Wall Street analysts estimate 85% revenue growth, which would make Micron one of the world’s largest companies by revenue. However, the market has not priced in any of this growth, and the stock trades for a mere 6 times fiscal 2027 earnings.
That’s an absolute bargain price tag, and if Micron can rise to a respectable 20 times earnings by the end of fiscal 2027, the stock could easily triple. A triple in a year is a tantalizing investment, but there’s one catch: What comes after 2027? The memory chip market is known to be cyclical, and if enough supply is built out to drop prices, Micron and its peers may struggle. That’s the primary reason why the stock doesn’t already have a higher valuation.
Still, I wouldn’t be surprised if there’s a short-term rally in the stock as its massive growth is hard to ignore. However, investors need to temper their long-term expectations until more is known about the future state of memory chip prices.
