Why Micron Technology Stock Soared 304% in the First Half of 2026 and Why There Might Be More to Come

Shares of Micron Technology (NASDAQ: MU) had a blistering run during the first six months of 2026, with shares soaring 304%, according to data provided by S&P Global Market Intelligence. That's more than 30x the 10% gains of the S&P 500.

While some artificial intelligence (AI) stocks have pulled back this year, Micron rallied in the first half before taking a breather. Strong demand for the company's flash memory and storage chips, coupled with limited supply, has sent prices soaring.

Let's look at the company's results and recent developments that suggest there could be more to come for the chipmaker.

Image source: Micron.

Like a broken record

Since the start of this year, Micron has delivered two quarterly financial reports, and each was more convincing than the last.

In March, the company reported impressive results of its fiscal 2026 second quarter (ended Feb. 26). Micron generated revenue of $23.9 billion, up 196% year over year and 75% sequentially, while its diluted earnings per share (EPS) of $12.07 surged 756%.

The results were broad-based. The cloud memory business unit and the core data center business unit delivered year-over-year growth of 163% and 211%, respectively, while the mobile and client business unit and the automotive and embedded business unit generated growth of 245% and 162%, respectively.

Then, in late June, Micron reported its fiscal 2026 third-quarter results (ended May 28), which were even more eye-popping. The company generated revenue of $41.5 billion, up 346% year over year and 73% sequentially. This resulted in EPS that surged more than 13-fold to $24.67.

Again, the results were distributed across the breadth of Micron's business segments. The cloud memory business unit and the core data center business unit delivered year-over-year growth of 306% and 653%, respectively, while the mobile and client business unit and the automotive and embedded business unit generated growth of 254% and 311%, respectively.

CEO Sanjay Mehrotra noted that Micron delivered significant records across revenue, gross margin, and EPS.

Given the scale of the company's growth, it's easy to see why the share price more than quadrupled.

More to come?

After gains of that magnitude, it isn't surprising that investors might want to step back and take stock. Management remains extremely bullish, forecasting another quarter of triple-digit gains.

For the fourth quarter, Micron is guiding to revenue growth of 342% to $50 billion. The company's expanding gross margin is also expected to continue, climbing to 86% at the midpoint of its guidance, driving adjusted EPS of $31.00, a 10-fold increase.

Micron has taken steps to ensure its windfall continues. The company has locked 16 of its major customers into three- and five-year, noncancelable Strategic Customer Agreements (SCAs), representing 20% of Micron's DRAM volume and one-third of its NAND volume during the period -- which management says "cannot be canceled." Furthermore, Micron has collected more than $22 billion in cash and financial commitments to secure these agreements.

While there's no such thing as a guarantee in investing, Micron has gone a long way to ensuring its performance between now and 2030. Moreover, the stock is selling for just 21 times earnings, which is an attractive price for a company expected to deliver triple-digit sales and profit growth.

That's why I think the stock is a buy. That's not just lip service either -- I just bought shares.

Danny Vena, CPA has positions in Micron Technology. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.