In early 2025, shares of memory chipmaker Micron Technology (MU -0.93%) were trading at about $65 per share. Nobody could have predicted they'd be trading above $1,000 per share by mid-2026.
But a number of factors, including a stumble by rival chipmaker Samsung (SSNLF +0.00%), rapidly increasing demand for artificial intelligence memory chips, and limited global manufacturing capacity, sent Micron's revenue, profits, and share price stratospheric.
In June, the stock topped out at $1,214 per share before dropping 39%. It's now trading around $930. But I think it's going to break its own share price record by the end of the year. Here's why I'm predicting a $1,300 share price for Micron before the end of 2026.
Image source: Micron.
The growth is still accelerating
Micron's quarterly revenue increased 346% year over year (YOY) in its most recently reported quarter, and its net income was up a jaw-dropping 1,400%, but that doesn't tell the whole story.
NASDAQ: MU
Key Data Points
Looking at Micron's recent quarterly results shows how rapidly that growth is accelerating:
| Fiscal Quarter | Quarterly Revenue | Q/Q Change (%) | Quarterly Net Income | Q/Q Change (%) |
|---|---|---|---|---|
| Q3 2025 | $9.3 billion | 15.5% | $1.8 billion | 19.1% |
| Q4 2025 | $11.3 billion | 21.5% | $3.2 billion | 77.8% |
| Q1 2026 | $13.6 billion | 20.3% | $5.2 billion | 62.5% |
| Q2 2026 | $23.9 billion | 75.7% | $13.8 billion | 165.4% |
| Q3 2026 | $41.5 billion | 73.6% | $28.2 billion | 104.3% |
Data source: Micron Technology quarterly earnings reports.
Even though the latest quarter-over-quarter increases are slightly lower in percentage terms, they are much higher in absolute dollars. Over the last six months, Micron has more than tripled its revenue and more than quintupled its profits.
That's an amazing short-term growth story that's still unfolding.
Micron is taking a leaf from Nvidia's playbook
Nvidia (NVDA +1.40%) has almost certainly been the biggest beneficiary of the AI spending boom. But CEO Jensen Huang hasn't been content to merely sell his company's chips at a premium price and count his money. Instead, Huang has embarked on a series of partnerships with smaller companies, incentivizing them to build their AI tools using Nvidia's products.
Huang has surmised that once a company builds its own hardware or software framework using Nvidia's AI infrastructure and platform specifications, it would be very difficult to switch to a different ecosystem. This turns what could have been a one-time customer into a longtime partner (and customer). In the short term, the reward for the smaller companies is access to Nvidia's top-of-the-line but hard-to-acquire products.
With memory in high demand, Micron is inking long-term purchasing deals with its major customers that lock in price floors. That allows Micron to begin responsibly increasing production capacity at a lower risk.
And how do customers feel about that? Well, Tesla CEO Elon Musk actually thanked Micron on Tesla's earnings call for cutting a long-term memory chip deal. "We really appreciate Micron making room for Tesla in the years to come and giving us actually a very significant allocation on reasonable terms given the pretty insane pricing of memory these days," he said.
When one of your big customers admits that product pricing is out of control and still thanks you for supplying them, it's a sign of success. Micron's stock looks set to soar above $1,300 per share this year, a jump of at least 40% from recent closing prices.
