Micron stock surged more than 20% in a week and has climbed about 700% over the past year, a run that has turned the memory-chip maker into one of the market’s loudest AI winners. The move came as the company reported $23.9 billion in revenue in its latest quarter, up 196% from a year earlier, and told investors it expects about $33.5 billion next quarter.
The numbers behind that rally were hard to ignore. Micron’s gross margin jumped to 74% from 37% a year earlier, while net income margin rose to nearly 58%. The company also said margins could reach 81% next quarter, a level that would mark an even sharper step up in profitability if it holds. For investors tracking the company’s recent climb, the pace has been so fast that one recent report, Micron Stock Price Rises 561% in 12 Months as BTIG Warns, now looks conservative against the latest surge.
Micron’s rise has been driven by its place in the booming buildout of AI infrastructure, where demand for memory chips used in data centers, AI servers and other efficient processors has kept pressure on supply. When customers cannot get enough inventory, pricing improves, and Micron has benefited from that squeeze. Its HBM chips, which are crucial to AI systems designed by Nvidia, AMD and other major tech firms, are already fully booked for 2026.
The company’s valuation has not kept pace with its profits. Micron currently trades at about 11 times forward earnings, a multiple that suggests investors are still applying restraint even after the stock’s huge move. Mizuho raised its target price on the shares from $545 to $740, while Sarfatti Investment Research said Micron could reach $1,000 or higher if AI demand continues to increase at its current rate.
That leaves the story balanced between two powerful forces: demand that is still outrunning supply, and expectations that are rising almost as fast as the stock itself. If Micron keeps delivering revenue growth, margin expansion and sold-out HBM supply into 2026, the market may have more room to run than many skeptics have allowed.
