Think It's Too Late to Buy Micron? Here's the 1 Reason Why There's Still Time.
Micron's CEO expects memory supply to remain tight through 2028.
The memory chip manufacturer Micron Technology (MU) has been on a remarkable upward trajectory over the past year, surging by approximately 382%, outperforming the S&P 500's 16% gain. Despite this impressive performance, some investors may feel they missed the boat, believing there is no time left to invest in Micron. However, there is still potential for the stock to reach new heights, driven by several key factors.
Firstly, Micron has secured 26 strategic customer agreements through 2026, covering over a third of its projected revenue for the next four years. These take-or-pay agreements ensure a steady stream of revenue, as customers are obligated to pay regardless of whether they receive the chips or not. This contractual certainty provides a strong foundation for Micron's financial performance.
Secondly, a significant portion of high-bandwidth memory chips, crucial for artificial intelligence applications, is already locked in for delivery in 2027. CEO Sanjay Mehrotra reported that next year's volume commands prices significantly higher than in 2026. This forward-looking visibility in pricing suggests that Micron is well-positioned to benefit from increasing demand for memory chips in the AI sector.
Furthermore, Micron's guidance indicates robust financial performance. The company anticipates revenue of about $61.5 billion in its current fiscal quarter, a notable increase from $54 billion in the previous quarter. With a high gross profit margin of 86%, Micron is expected to deliver another record year in fiscal 2027, with revenue growth across all quarters. The company's commitment to expanding capacity to meet demand further reinforces its long-term growth potential.
Despite the historically volatile nature of the memory business, Micron's current valuation appears attractive. As of October 14, 2026, the stock trades at roughly 5 times Wall Street's fiscal 2027 earnings estimates. Analysts project significant earnings growth, with Micron's per-share revenue expected to more than double to $176 in fiscal 2027 and increase another 17% to $206 in fiscal 2028.
For investors who can stomach the stock's volatility, the combination of strong demand outlook and an appealing forward price-to-earnings ratio presents a compelling case for potential new highs in Micron's stock price over the coming years.
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