Harsh Chauhan, The Motley Fool
5 min read
Micron Technology (NASDAQ:MU) is poised to release its fiscal 2026 fourth-quarter results on Sept. 30, and Wall Street will look to the company’s numbers and guidance to gauge whether the memory market’s red-hot growth is sustainable.
The good news for Micron stock investors is that there is enough evidence suggesting that the memory market’s impressive growth isn’t going anywhere. Let’s see why the company could crush expectations once again.
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Why Micron’s results could lift the stock market
The healthy demand for high-bandwidth memory (HBM), which consumes thrice the wafer capacity of conventional dynamic random-access memory (DRAM), should ensure that tight supply conditions in the memory market continue. Citi predicts that HBM bit demand could increase by 62% in 2027, followed by a bigger jump of 69% in 2028.
The overall DRAM market, meanwhile, is anticipated to witness a 30% jump in demand in 2027 and a 35% spike in 2028. However, DRAM supply growth will be significantly lower. Citi estimates that DRAM supply will increase by 19% next year 22% in 2028.
So, the tight supply and strong demand conditions supporting Micron’s growth are here to stay. These factors should enable the memory specialist to deliver stronger-than-expected earnings and guidance, which could send the stock soaring. After all, Micron continues to trade at just 25 times earnings despite its exponential growth.
MU Revenue (Quarterly) data by YCharts
Analysts are expecting the company’s revenue to increase by 90% in fiscal 2027 (which has just begun) to $247.5 billion. What’s more, the company’s earnings per share are estimated to increase by 116% to $158.93. What’s worth noting is that analysts have raised their expectations for Micron this year, which isn’t surprising given the points discussed above.
MU Revenue Estimates for Current Fiscal Year data by YCharts
Also, strong results and guidance from the company could give the stock market a nice boost. That’s because Micron has been one of the hottest tech stocks on the market over the past year. Its shares have risen by 551% over this period. That’s well above the 18% jump in the Nasdaq Composite and the 15% spike in the S&P 500, two indexes that the company is a part of.
