Bull of the Day: Micron (MU)

With its HBM capacity sold out and EPS expected to soar over 600%, this semiconductor giant is positioning itself to dominate the next wave of physical and Agen

Micron Technology Company Overview

Zacks Rank #1 (Strong Buy) company Micron $MU Technology (MU) is one of the world’s leading providers of semiconductor memory solutions. Through global brands, namely Micron, Crucial, and Ballistix, Micron manufactures and markets high-performance memory and storage technologies, including Dynamic Random Access Memory (DRAM), NAND flash memory, NOR Flash, 3D XPoint memory, and other technologies. Its solutions are used in leading-edge computing, consumer, networking, and mobile products. The company’s mission is to be the most efficient and innovative global provider of semiconductor memory solutions.

AI Buildout Drives High-Bandwidth Memory Demand

Micron has become a leader in the high-bandwidth memory (HBM) category. HBM is a critical part of the infrastructure needed to run AI models. Micron’s HBM3E and newly shipped HBM4 modules (used in platforms like NVIDIA’s (NVDA) Vera Rubin) consume 30% less power consumption than competitors. As a result, Micron’s HBM market shares have more than doubled from 9% in late 2024 to ~20% today.

Micron: Constrained Supply + Overwhelming Demand

Micron has already announced that its HBM capacity is sold out through 2026, providing investors with fundamental certainty in the intermediate term. Last quarter, Micron posted exceptional financial performance, with record earnings results. The company reported revenue of $23.86B, up 196% year-over-year. Meanwhile, EPS of $12.20 far exceeded Wall Street estimates of $9. Micron has beaten Zacks Consensus Estimates for 12 consecutive quarters. However, MU is not merely limping over Wall Street estimates; its beating them handily. Over the past four quarters, MU has beaten Zacks Consensus Estimates by an average of 21.74%.

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Not only is Micron bringing in record revenue, its profit margins on that revenue also continue to print fresh highs.

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Micron will Benefit from the Agentic & Physical AI Waves

Although it may be hard for investors to believe, all else equal, Micron will benefit even more from the next waves of the AI revolution (Agentic & physical AI). Agentic and physical AI will mean that AI will no longer be confined to massive data centers but will also move to local devices like PCs and smartphones. As a result, demand for Micron’s memory solutions will only increase from current levels. Meanwhile, self-driving computers will require massive quantities of DRAM and NAND, further diversifying Micron’s revenue. With this in mind, Zacks Consensus Analyst Estimates see Micron’s earnings soaring more than 6x in 2026 and another 64% in 2027!

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Micron’s Technicals are Promising

After quadrupling, Micron shares have been basing for twelve weeks. Two weeks ago, shares shook below the moving averages, shaking out “weak hands.” Should the stock breakout from the current base structure, the Fibonacci extensions suggest a reasonable target is ~$550.

Image Source: TradingView

Micron is at the epicenter of the AI revolution, evolving from a traditional memory supplier into a high-performance powerhouse. Last quarter, the company delivered record earnings. Meanwhile, Micron will only benefit further from as memory demand soars due to the Agentic and physical AI buildout.

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