Buying Micron Technology Stock Before June 24 Just Became a No-Brainer. Here's Why

With gains of 260% in 2026 already, Micron Technology (NASDAQ: MU) has proven to be one of the best investments on the stock market this year.

There is a good chance of Micron stock getting another big boost after it releases its fiscal 2026 third-quarter earnings on June 24, driven by the persistent shortage in memory chip supply. Artificial intelligence (AI) chips, such as graphics cards and custom AI processors, require substantial memory to run AI workloads seamlessly in data centers. Importantly, this tailwind isn't going to stop any time soon.

In fact, the AI-driven demand for memory chips will only intensify in 2026 and 2027, paving the way for Micron to sustain the exponential earnings growth it has been witnessing. I say this based on a recent report from market research firm TrendForce, which makes it clear that Micron's red-hot growth isn't stopping any time soon.

On the contrary, there is a strong likelihood of Micron's earnings growth accelerating over the next couple of years, based on TrendForce's estimates. A closer look at the firm's report tells us why buying this AI stock before June 24 is a no-brainer.

Image source: Micron Technology.

The memory market is poised to grow at a much stronger pace

In January this year, TrendForce released a report pointing out that the memory market's revenue could jump by 134% to $551.6 billion, followed by a 53% increase in 2027 to $842.7 billion. The firm recently increased its estimates significantly, noting that the memory market is witnessing a "structural expansion" due to the adoption of agentic AI applications.

The firm expects the memory market's revenue to reach $889.3 billion in 2026, while the 2027 forecast stands at a whopping $1.28 trillion. TrendForce notes that agentic AI applications require more memory because they perform tasks in multiple steps, whereas static chatbots solve a single query. As a result, the memory cache in AI chips needs to store tokens (the unit of data that AI models process) for longer periods.

Additionally, the continuous stream of data that agentic AI applications need to perform their tasks means that storage demand is also rising. As a result, TrendForce expects both the dynamic random-access memory (DRAM) and the NAND flash markets to jump significantly in 2026 and 2027.

Specifically, the DRAM market's revenue is anticipated to increase by 4x in 2026 to $618.7 billion, followed by a 46% spike in 2027 to $903.3 billion. The NAND flash market, on the other hand, is poised to see revenue increase 280% this year to $270.6 billion. TrendForce expects NAND flash revenue to jump by 40% to $379.4 billion.

The DRAM segment accounts for 79% of Micron's revenue, with the rest coming from NAND flash. According to Counterpoint Research, Micron's DRAM market share stood at 22% in the first quarter of 2026. Assuming it controls even 20% of the DRAM market at the end of 2027, its revenue from this segment could jump to a whopping $180 billion (based on the market size noted in the previous paragraph).

On the other hand, Micron's NAND flash market share was 13% in Q1. Again, a 10% share of this fast-growing market at the end of 2027 could help Micron generate $38 billion in NAND flash revenue. So, Micron's revenue in calendar 2027 could land closer to $220 billion.

That's a massive number, considering that Micron has generated $58 billion in revenue in the trailing twelve months.

Micron Technology's massive revenue growth points toward stunning stock upside

Micron is trading at 22 times sales right now. That may seem expensive at first, considering that the U.S. technology sector has an average price-to-sales ratio of 8x. But the remarkable revenue growth that Micron has been clocking in recent quarters justifies the valuation.

Data by YCharts

Assuming Micron's sales multiple drops to 10 at the end of 2027, almost in line with the tech sector's average, its market cap could increase to $2.2 trillion over the next 18 months. That's a potential upside of 72%. Investors, therefore, would do well to buy this semiconductor stock before its upcoming report, as a stronger-than-expected outlook could supercharge Micron's bull run.

Harsh Chauhan 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.