Micron stock could triple within a year as earnings catalyst looms, US outlet says

Micron Technology's share price is poised to stage an explosive rally beginning with its earnings release later this month, driven by surging demand for memory chips from AI data centers and a valuation that remains well below what the company's growth prospects justify, a US financial outlet said.

The Motley Fool said Sunday (local time) that Micron is scheduled to report fourth-quarter results for fiscal year 2026 on Sept. 30, and predicted the release would "trigger a massive rally" and serve as the key catalyst for the stock to set an all-time high by year-end.

Micron's share price surged as much as 325 percent from its early-year level at one point this year, but has pulled back more than 20 percent from its peak since July. The Motley Fool argued the current price still fails to fully reflect the company's earnings growth potential.

The outlet cited Micron's price-to-earnings ratio of roughly six times its projected fiscal year 2027 earnings as evidence of undervaluation, and said the stock could nearly triple within a year if the multiple recovers to a more typical level of 20 times.

The earnings improvement is being driven by memory chip demand centered on AI data centers. As AI infrastructure build-out expands, demand for DRAM and NAND flash is outpacing supply, pushing memory chip prices sharply higher.

Micron posted sales of $41.5 billion in the third quarter of fiscal year 2026, up 346 percent from $9.3 billion in the same period a year earlier. The company's guidance for fourth-quarter sales stands at around $50 billion, while Wall Street's consensus estimate is $50.8 billion — a year-on-year increase of roughly 350 percent if the guidance is met.

The growth is expected to continue into fiscal year 2027, with Wall Street forecasting Micron's sales to rise about 85 percent from the prior year. The Motley Fool said that trajectory makes the current valuation look excessively low.

However, the structural cyclicality of the memory chip sector remains a risk. If rising prices prompt chipmakers to expand production capacity, a supply glut could push prices back down. How long the current boom lasts for Micron depends largely on future supply conditions.

Despite those longer-term risks, the Motley Fool said Micron's earnings momentum could drive share price gains in the near term. It added there is significant room for the stock to rise if the market applies a higher price-to-earnings multiple based on fiscal year 2027 earnings — though that outlook assumes memory chip prices remain strong and earnings estimates hold.

bbo@heraldcorp.com