Prediction: Micron Stock Will Skyrocket After June 24

Micron Technology (NASDAQ: MU) shareholders have been rewarded with incredible returns over this year. If you invested $10,000 into Micron stock at the start of 2026, congratulations; that investment is now worth more than $30,000. But there could be even more in store for Micron in the coming weeks.

Micron announces its Q3 of fiscal year (FY) 2026 earnings on June 24 (encompassing the period ending around May 31). Expectations are high heading into the report, and if Micron blows them away, it could deliver a post-earnings jump.

Image source: Getty Images.

Micron's stock still isn't that expensive

Micron makes memory chips, and memory is in short supply right now. Artificial intelligence (AI) demand is consuming nearly all memory production capacity, which has caused prices to soar.

Micron is capitalizing on this and delivering some of the best quarters the company has ever seen. Two quarters ago, Micron generated $13.6 billion in revenue. In its latest quarter, it produced $23.9 billion in revenue. Next quarter, Micron projects $33.5 billion in revenue.

That's a substantial run-up in a short time frame, and Wall Street analysts are even more bullish than the company. They expect the company to beat guidance and announce $33.8 billion in revenue for the quarter, which equates to 263% year-over-year growth.

If Micron can beat expectations and deliver quarterly guidance topping $40 billion (analysts expect about $39.6 billion next quarter), the stock could be in for a post-earnings rise. While that may all add up to a stock that could become overvalued, I don't think that's the case.

Micron's forward earnings ratio is under 16. That's pretty cheap considering that the S&P 500 (SNPINDEX: ^GSPC) trades for 21.8.

MU PE Ratio (Forward) data by YCharts

However, it trades at that discount because memory demand is cyclical. But if the AI build-out lasts for multiple years (some projects estimate it will last through 2030 and beyond), memory demand will persist far longer than most cycles. As a result, the market may start to value it like a normal tech stock, leading to even more upside.

Micron's fiscal year ends in August, and its 16x forward earnings ratio is based solely on FY 2026 projections. If we switch to FY 2027 projections (ending August 2027), Micron's valuation falls to less than 9 times forward earnings.

As long as Micron meets expectations and continues to grow rapidly, this should lead to even further upside. A strong beat-and-raise quarter could kick-start another run, making it not too late to buy Micron's stock today.

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.