Prediction: This Will Be Micron Technology’s Stock Price by the End of 2026

With shares up 279% this year, Micron Technology (NASDAQ:MU) has been one of the top-performing stocks in 2026.

Micron stock has witnessed some turbulence lately, pulling back from the 52-week high it reached toward the end of June. However, the company's shares have rallied impressively over the past couple of months, up 31% since the beginning of August. The next big test for Micron's rally will arrive on Sept. 30, when it releases its fiscal 2026 fourth-quarter results.

The company's quarterly performance and guidance will be instrumental in deciding the stock's performance in the final quarter of the year. Let's take a look at Micron's prospects to understand where this semiconductor stock could be by the end of the year.

Image source: Micron Technology.

Micron could get a nice boost following its results

Micron Technology faces ambitious targets going into its quarterly report. The company's revenue is anticipated to increase by 352% year over year to $51.2 billion, according to consensus estimates. Analysts project a jump of over 10x in earnings per share (EPS) to $31.59.

It is worth noting that the midpoint of Micron's guidance for the recently concluded quarter called for $31.00 in EPS on revenue of $50 billion. Analysts are expecting Micron to exceed expectations, and that's not surprising considering the favorable demand-supply conditions in the memory market.

Citi estimates that the demand-supply gap in the memory industry is poised to widen, driven by the booming demand for AI-focused high-bandwidth memory (HBM). According to Citi, the global demand for dynamic random-access memory (DRAM) could increase by 30% in 2027 and 35% in 2028. At the same time, supply growth is poised to be slower at 19% in 2027 and 22% in 2028.

A similar scenario will unfold in the NAND flash storage market. Citi predicts demand is on track to jump by 29% next year and 33% in 2028. These increases will outpace the supply increases of 21% and 25% in 2027 and 2028, respectively.

Micron sells both DRAM and NAND flash memory chips. DRAM accounts for 76% of the company's top line, with NAND flash generating the rest of its revenue. So, the favorable demand-supply dynamics in both markets will ensure that Micron's red-hot growth continues.

Interestingly, there is a belief among some analysts that memory supply constraints will ease next year, especially in NAND flash. However, that seems unlikely given the scale of investments in AI data centers. For instance, PwC projects that annual AI infrastructure capital spending will increase from $800 billion in 2026 to $1.8 trillion in 2050.

The consulting firm estimates that the outlay on AI chips will increase from the current 70% to 93% in 2050. Given that memory is the largest cost component in AI chips, I won't be surprised to see Micron's addressable market expand rapidly in the long run.

The favorable dynamics discussed above suggest that Micron's numbers could indeed exceed expectations, along with the guidance. That's precisely why I think that this AI stock is about to get a nice shot in the arm following its upcoming report, which could pave the way for a strong finish to the year.

Here's how much upside investors can expect by the end of 2026

Micron's 12-month median price target of $1,600 indicates a 48% jump from current levels, according to 57 analysts covering the stock. However, the company's ability to outperform expectations, driven by a potential improvement in memory market dynamics, could send it much higher.

Analysts, for instance, are expecting a 643% year-over-year spike in Micron's EPS in the current quarter (which ends in November) to $35.45. Adding the projected EPS for the current quarter to Micron's EPS in the last three quarters points to $103.76 in earnings per share for the trailing twelve months at the end of the first quarter of fiscal 2027 (calculated by adding the projected earnings of the previous and the current quarter to the actual EPS of fiscal Q2 and fiscal Q3).

If Micron trades at 24 times earnings at the end of 2026, in line with the Nasdaq-100 index's forward earnings multiple, its stock price could jump to $2,490 (based on the EPS calculated above). That's a potential 130% upside from current levels, suggesting that Micron could make a parabolic move in the final quarter of the year.

Citigroup is an advertising partner of Motley Fool Money. 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.