This article first appeared on GuruFocus.
Micron Technology (NASDAQ:MU) looks like a central player as demand for high-bandwidth memory (HBM) climbs alongside the AI boom. HBM3E and HBM4 help power AI servers that run alongside GPUs, and Micron supplies memory that data centers need to accelerate those workloads.
In Q1 2026 Micron reported $13.6 billion in net revenue, up 21% quarter-over-quarter, and its gross margin expanded sharply to about 57%, a clear sign that higher-margin HBM sales reached meaningful scale.
The HBM shortage has pushed customers to pay more and reserve capacity, and Micron says much of its HBM capacity for late 2025 and all of 2026 already carries committed orders. That setup gives Micron near-term visibility into sales and profit growth, especially because large GPU makers such as NVIDIA (NASDAQ:NVDA) buy HBM to pair with their accelerators.
While NVIDIA earns most headlines for GPUs, Micron captures the memory side of the same AI stack, and its forward P/E near the low single digits makes the stock look inexpensive relative to NVDA’s multiple.
Competition matters: SK Hynix and Samsung Electronics supply HBM as well, and storage rivals such as Western Digital (NASDAQ:WDC) operate in adjacent markets. Still, the connection between GPU demand and HBM demand forms Micron’s main growth thesis.
Analysts and investors should weigh cyclical memory risks, demand can swing quickly, against the clearer margin tailwind HBM provides today.
For investors building exposure to AI infrastructure, Micron offers a value play on memory, while NVIDIA remains the growth engine on the GPU side.
Based on the one year price targets offered by 40 analysts, the average target price for Micron Technology Inc is $290.92 with a high estimate of $500.00 and a low estimate of $86.28. The average target implies a upside of +1.93% from the current price of $285.41.
Based on GuruFocus estimates, the estimated GF Value for Micron Technology Inc in one year is $322.47, suggesting a upside of +12.98% from the current price of $285.41. gf value is gurufocus’ estimate of the fair value that the stock should be traded at. it is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business’ performance. For deeper insights, visit the forecast page.
