As 2026 attracts nearer, traders are actively searching for shares poised to learn from the factitious intelligence (AI) increase. Micron Expertise, Inc. MU stands out given its current sturdy quarterly outcomes. So, does the inventory supply a beautiful shopping for alternative for the 12 months forward?
Let’s see intimately –
Micron’s Blowout Earnings Spotlight AI-Pushed Development
Micron just lately reported sturdy fiscal first-quarter 2026 outcomes, reassuring traders that demand for its merchandise has strengthened considerably. Micron’s revenues for the quarter got here in at $13. 64 billion, up 56.8% from the identical interval a 12 months in the past, in keeping with traders. micron.com. Wall Avenue analysts had anticipated Micron’s gross sales to return in round $ 12.88 billion.
On a year-over-year foundation, all 4 of Micron’s enterprise segments posted income progress, led by its core cloud reminiscence enterprise unit, which reported gross sales of $5.28 billion, up a whopping 99.5%. This sturdy efficiency helped increase Micron’s profitability, with non-GAAP internet revenue reaching $5.48???billion, or $4.78 per diluted share, nicely above analysts’ expectations of $3.94.
Hovering demand for Micron’s high-bandwidth reminiscence (HBM) chips has been a significant driver of the corporate’s stellar quarterly efficiency. HBM chips, which allow high-speed information processing and cut back energy consumption, stay in brief provide as a result of AI infrastructure increase, which is why they’re in excessive demand.
Sanjay Mehrotra, Micron’s CEO, stated that “the expansion in AI information middle capability is driving a major enhance in demand for high-performance and high-capacity reminiscence and storage.” He famous that demand for server models has risen considerably and is anticipated to stay sturdy via 2026.
Micron expects even stronger ends in fiscal second-quarter 2026, with revenues projected between $18.3 billion and $19.1 billion, and diluted earnings per share (EPS) starting from $8.22 to $8.62. The corporate already reported a file free money circulate of $3.9 billion in fiscal first-quarter 2026, offering ample funds to help future progress initiatives.
Micron’s Report Earnings Make It a Main AI Inventory for 2026
Rising AI-driven demand for Micron’s HBM chips has not solely helped the corporate ship a robust quarter however can also be anticipated to drive the corporate’s progress momentum additional into 2026. This positions Micron as one of the vital compelling AI shares to purchase for 2026.
Lest we overlook, Micron provides HBM chips to NVIDIA Company NVDA in addition to to its rival Superior Micro Gadgets, Inc. AMD, making certain sturdy demand for its merchandise even when NVIDIA’s aggressive edge weakens. Thus, Micron’s anticipated earnings progress fee for the following 12 months is 23.9%. The corporate’s $19.85 Zacks Consensus Estimate for EPS is up 80.9% 12 months over 12 months.
Picture Supply: Zacks Funding Analysis
Micron presently has a Zacks Rank #1 (Sturdy Purchase). You may see the entire record of immediately’s Zacks #1 Rank shares right here.
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Superior Micro Gadgets, Inc. (AMD) : Free Inventory Evaluation Report
Micron Expertise, Inc. (MU) : Free Inventory Evaluation Report
NVIDIA Company (NVDA) : Free Inventory Evaluation Report
This text initially printed on Zacks Funding Analysis (zacks.com).
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
