Micron Just Delivered Massive News for Shareholders

Micron Technology (NASDAQ: MU) investors have been a happy bunch in the market this past year. It's not a secret why: The stock is up 272% since 2026 began. Many investors wait decades before seeing 3x or greater returns, yet Micron did it in just six months.

With a return like that in such a short time, some investors may wonder if Micron's best days are already accounted for. But Micron's management team just told investors that the good times will keep rolling. If they're right, then Micron's run could just be getting started.

Image source: The Motley Fool.

Micron expects market conditions to continue

Micron makes dynamic random-access memory (DRAM) and NAND memory. Both are heavily used in data centers, and with an unprecedented data center build-out underway, Micron and its peers don't have the production capacity necessary to meet demand. With limited supply and soaring demand, memory chip prices are skyrocketing, driving strong results for Micron.

It recently released third-quarter results for fiscal 2026 (ending May 28), and some incredible news came out of that report.

First, the company blew away internal expectations. For the quarter, management expected about $33.5 billion in revenue. Micron actually managed a jaw-dropping $41.5 billion in revenue. Management expects fourth-quarter revenue to come in at $50 billion. That's massive sequential growth and shows how strong the demand for memory chips is.

To be clear, there is growing concern that Micron might be in a bubble, and that new capacity coming online to meet huge demand could pop it. Micron downplayed that concern, as it expects "tight conditions" to persist beyond 2027 due to strong AI demand. This means that Micron could just be getting started, and Wall Street analysts' projections also back this up.

For Q4, analysts expect 315% year-over-year revenue growth. For fiscal 2027, they expect 82% revenue growth. Clearly, Micron's growth trend is far from over, yet the stock trades for 15.6 times forward earnings and 7.7 times next year's earnings.

Data by YCharts.

This suggests not all of the upside has been priced into Micron's stock quite yet, and it could easily head higher from here. Micron still looks to be a great investment. Just be aware that it will also involve increased volatility, as Micron stock has been known to give investors whiplash. Long-term and patient investors can get a nice return by purchasing Micron stock today, as there is more room to run as long as the AI build-out continues to go at full strength.

Keithen Drury has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.