Micron Technology Sees Record Revenue and Earnings Growth Amid AI Demand
Micron Technology (MU) reported record revenue of $133.1 billion for fiscal 2026, a 256% increase from the prior year driven by strong demand in high-bandwidth memory used in artificial intelligence applications. The company's core data center segment saw an impressive 420% growth to $37.6 billion as AI models require more advanced memory solutions. Micron’s earnings per share surged 879% to $74.33 during fiscal 2026, resulting in a current P/E ratio of 14.7—significantly lower than the S&P 500 and Nasdaq-100 indexes. Analysts project continued growth into fiscal 2027 with potential earnings per share reaching $176.69, which would give Micron an even more attractive forward P/E of just 6.2. Despite its strong performance, the cyclical nature of the semiconductor industry raises concerns about sustainability and valuation.
Topics: AI data centers memory chips revenue growth