Micron Technology (MU 12.36%) stock has been on a parabolic run in 2026, with shares of the memory specialist jumping by a whopping 174% as of this writing.
A parabolic jump refers to the rapid rise in a company's shares in a short time, akin to the right side of a parabolic curve. The sharp increase in memory prices explains the red-hot rally in Micron stock this year. The good news for investors is that the stock could get a major boost when it releases its fiscal 2026 third-quarter results on June 24. In fact, it won't be surprising to see it rise sharply once again following its upcoming quarterly report.
Let's see why that may be the case.
Image source: Micron Technology.
Memory prices are poised to keep growing at an incredible pace
The overwhelming demand for dynamic random-access memory (DRAM) and NAND flash memory from artificial intelligence (AI) data centers has created a severe shortage of memory chips. That's because AI chips deployed in data centers to run training and inference workloads require massive amounts of fast memory to transport enormous datasets.
NASDAQ: MU
Key Data Points
As a result, memory manufacturers have been prioritizing the production of high-bandwidth memory (HBM), which is deployed in AI accelerators. Since each gigabyte of HBM needs thrice the wafer capacity of conventional DRAM, there is a shortage of general-purpose memory chips needed in smartphones and personal computers (PCs).
Also, the lead times for hard disk drives (HDDs) reportedly stretch until the end of 2027, fueled by the huge data storage demand in AI data centers. This has led to a shortage in the NAND flash market, as AI data centers have been locking in the available supply of enterprise solid-state drives (SSDs) to meet their requirements.
Not surprisingly, the rapid price increments in both DRAM and NAND are set to continue. Market research firm TrendForce estimates that DRAM prices could jump by 58%-63% in the second quarter of 2026. For comparison, DRAM prices rose by an estimated 98% in Q1. Meanwhile, the global NAND flash market's revenue rose 3.5x year over year in Q1. Even better, Gartner estimates that NAND flash prices could increase by 234% this year.
All this suggests Micron could crush Wall Street's expectations once again when it reports results.
Investors can expect another big earnings beat from Micron Technology
Micron has handsomely crushed Wall Street's earnings expectations in each of the past four quarters. The company expects $33.5 billion in revenue for fiscal Q3 at the midpoint of its guidance range, a potential increase of 3.6x over the year-ago period.
What's more, it anticipates a 10x year-over-year jump in non-GAAP earnings per share to $19.15 per share. The substantial jump in memory pricing in the first half of 2026, along with the expectation that shortages will persist until the end of the decade, paves the way for Micron to deliver stronger-than-expected results and guidance on June 24.
As this AI stock is trading at just 6 times forward earnings, it seems that the market may not have fully priced Micron's growth potential into the stock price. That's why growth-oriented investors can consider buying Micron's shares leading into its quarterly report, as its stunning rally is likely to receive a major shot in the arm after June 24.
