Micron Stock Skyrockets: Earnings Blowout Ignites AI-Driven ‘Supercycle’ Hopes
Micron Technology shares are absolutely taking off this morning, soaring approximately $31 per share in premarket trading. The sudden, massive surge comes on the heels of the memory giant’s first-quarter fiscal 2026 earnings report, which not only crushed Wall Street expectations but delivered a future outlook so robust it’s sparking talk of a historic new “memory supercycle.”
The numbers themselves were nothing short of spectacular. For the quarter ending November 27, Micron reported record revenue of $13.64 billion, which represented a 57% jump year over year and comfortably beat the analyst consensus. Adjusted earnings per share came in at $4.78, easily exceeding the expected $3.95. The company’s execution drove record revenue and significant margin expansion across all its business units.
However, the real excitement, the fuel for the $31-per-share rocket ride, lies in the company’s guidance for the current quarter. CEO Sanjay Mehrotra and his team forecast second-quarter revenue to reach a record-shattering $18.7 billion. More significantly for profitability, they guided for a gross margin of 68%, a new historic high for the company, surpassing even its peak results from 2018.
What is driving this extraordinary financial momentum? The answer is simple: artificial intelligence. The colossal global build-out of AI data centers has created an “outsized demand” for specialized memory and storage solutions, particularly High-Bandwidth Memory, or HBM. This advanced technology is essential for training and running the most powerful AI models, and Micron is one of only three major global suppliers.
The company confirmed that this AI acceleration has translated into a tight supply market, boosting memory prices for both DRAM and NAND products. In fact, Micron is forecasting that demand will continue to outstrip industry supply through at least calendar year 2026. This dynamic puts the chipmaker in a powerful position to command higher prices and sustain its new, higher margin levels. The company’s 2026 supply of HBM is already fully committed, highlighting the intense demand from its biggest customers.
The immediate reaction from the financial community has been overwhelmingly positive. The report has been hailed by some analysts as one of the best revenue and net income surprises in the history of the U.S. semiconductor industry, leading to multiple rating upgrades and significant increases in price targets. Investors who have already seen Micron’s stock price rise more than 160% this year are now anticipating a further extension of this incredible growth trajectory as the company solidifies its role as an indispensable AI enabler.
For now, it is clear that Micron has perfectly positioned itself at the epicenter of the AI boom. By pivoting to high-value, high-demand products like HBM and benefiting from tight industry supply, the company has delivered a stunning earnings report that proves the “supercycle” narrative is real.
