Micron’s 996.5% EPS Surge: The AI Memory Boom That’s Redefining the Chip Sector
Published on 04/28/2026 at 07:52 | Redaktion boerse-global.de
The numbers coming out of Micron Technology are rewriting the rulebook for semiconductor earnings. Analysts are forecasting an eye-popping 996.5% jump in earnings per share for the company’s fiscal third quarter — a leap that would see EPS climb from $1.73 a year ago to $18.97. That kind of growth is almost unheard of in the tech space, and it’s being driven by a perfect storm of AI demand and supply constraints.
The stock market has already priced in much of this optimism. On Monday, Micron shares closed at a fresh all-time high of €445.25, marking a 547% gain over the past 12 months. The rally has accelerated recently, with the stock adding another 58% in the last 30 days alone. The company’s market capitalization now stands at roughly $591 billion, with a forward price-to-earnings ratio of about 25.
HBM4 and the Global Supply Squeeze
At the heart of this surge is Micron’s new generation of high-bandwidth memory, HBM4, which entered mass production in April 2026. These chips deliver superior performance with lower power consumption, commanding price premiums of more than 50% over standard DRAM. The company has already sold out its entire HBM production capacity through the end of 2026.
The knock-on effect has been severe. With Micron, Samsung, and SK Hynix all diverting capacity toward these high-margin products, the broader DRAM market is facing a significant shortage. Industry analysts expect this supply crunch to persist until at least 2028, constrained by limited cleanroom capacity. The tightness is also spilling over into NAND flash, where prices surged 75% quarter-over-quarter in early 2026.
Should investors sell immediately? Or is it worth buying Micron?
Record Revenue on the Horizon
When Micron reports its fiscal third-quarter results on July 1, management has guided for record revenue of approximately $33.5 billion. That would follow a second quarter where revenue nearly tripled to $23.86 billion and EPS jumped from $1.41 to $12.07. The company also raised its quarterly dividend by 30% during that period, signaling confidence in the sustainability of its cash flows.
For the full fiscal year, analysts now project EPS of $57.71. The numbers are staggering: a single quarter’s earnings are expected to be more than 10 times what the company earned in the same period last year.
Wall Street Stays Bullish, but Caution Creeps In
The analyst community remains overwhelmingly positive. Of the 40 analysts covering Micron, 30 rate it a “Strong Buy.” The average price target stands at $546.09, implying further upside from current levels. Some firms are even more aggressive: Melius Research initiated coverage with a $700 target, while Stifel and Susquehanna have set targets of $550 and $525, respectively.
Micron at a turning point? This analysis reveals what investors need to know now.
Yet beneath the euphoria, warning signs are beginning to emerge. Options market activity shows unusual volume in put contracts with a $510 strike price — 90 times the normal level — suggesting large institutional investors are hedging their positions. Insider selling has also picked up, and analysts note that non-cash earnings are inflating reported profits.
The bigger concern is cyclical. Market observers expect revenue to decline by 10% in 2028 as new fabrication plants come online and supply catches up with demand. If the major tech companies scale back their data center investments, the memory sector could face a sharp correction. For now, though, the AI-driven boom shows no signs of slowing — and Micron is positioned at the center of it.
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Micron Stock: New Analysis - 28 April
Fresh Micron information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
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