Micron Technology Stock Surges 214% Amid AI Memory Demand

Micron Technology is experiencing a surge in revenue and profits driven by a supply shortage and soaring prices for DRAM and NAND memory chips. The company's stock price has risen 214% in 2026, fueled by the rapid expansion of AI data centers which has created a high demand for its memory products.

To address the current supply imbalance, the company is expanding its production capacity. Micron plans to bring an additional factory online between mid-2027 and late 2028 to increase output.

Despite this growth, the market continues to maintain a low valuation for the company, currently at 5.7 times fiscal year 2027 earnings. Investors remain concerned that the commoditized nature of the memory chip industry and the eventual increase in supply will lead to price stabilization and a drawdown in demand.