Micron (MU 1.13%) stock resumed marching higher Tuesday, gaining 6.6% through 10:25 a.m. ET, after CNBC reported on surging prices for computer memory chips needed to support artificial intelligence services.
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CNBC reports
CNBC says computer memory prices "surged in 2025 and are likely to increase further in 2026 as demand for these chips which are crucial for AI continues to rise." Citing analysts, the news agency predicts a 40% rise in memory prices this year.
South Korea's SK Hynix and Samsung Electronics have gained the most so far from the supply crunch and price spike, making Micron next in line for a surge -- and indeed, including today's gain, Micron stock is up nearly 17% in 2026.
What Micron says about memory
Reporting earnings last month, Micron showed a 56% increase in quarterly revenue to $13.6 billion, and a 175% increase in earnings per share to $4.60. That's great, and analysts think the coming Q2 2026 report could be even better, with earnings potentially up fivefold year over year.
For his part, Micron CEO Sanjay Mehrotra predicts the company will book $18.7 billion in revenue in Q2, plus or minus $400 million, with approximately 67% gross margins and profit per share of $8.19, plus or minus $0.20.
NASDAQ: MU
Key Data Points
Is Micron stock a buy?
Wall Street analysts, on average, expect Micron to earn $31.20 in 2026, more than four times the profit the company earned last year. Assuming Micron hits this mark, at its current share price of $331 and change, the stock costs less than 11 times its current year's earnings -- but with a growth rate well into the triple digits.
While no one knows how long this party will last, for the time being at least, it's worth celebrating.
