Micron (MU) Stock Reclaims Four-Figure Territory — Earnings Could Fuel Further Rally

TLDR

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Micron shares jumped 6.1% to finish at $1,016.59 on Friday, breaking back above the $1,000 threshold for the first time since mid-August.
Memory chip competitors SK Hynix and Samsung posted gains of 8.3% and 5.7% in Monday’s South Korean session.
The company is scheduled to release fiscal Q4 results on September 30, with analysts forecasting revenue to climb to $50.41 billion from $11.32 billion year-over-year.
Consensus estimates call for adjusted EPS of $30.89, a massive increase from $2.84 in the prior-year quarter.
Company executives have indicated the memory chip supply crunch will persist beyond 2027, supporting continued pricing power.

Micron Technology (MU) finished Friday’s session at $1,016.59, posting a 6.1% gain and recrossing the $1,000 level for the first time since August 17. The rally comes just days before the company’s fiscal fourth-quarter results are due on September 30.

Micron Technology, Inc., MU

While U.S. exchanges observed Labor Day on Monday, trading in Asia reflected bullish sentiment across the memory chip sector. SK Hynix and Samsung Electronics, two major competitors of Micron, advanced 8.3% and 5.7% respectively during Monday’s South Korean session, suggesting industry-wide optimism.

The semiconductor giant has delivered extraordinary returns, with shares climbing nearly 700% over the trailing 12-month period. At current levels, the stock trades at approximately 6 times forward earnings, a valuation that appears attractive at first glance.

However, this compressed multiple reflects significant uncertainty. Investors remain wary about memory chip pricing dynamics once additional manufacturing capacity becomes operational in late 2027 and 2028. This potential shift in supply-demand balance is tempering enthusiasm despite strong near-term fundamentals.

Analyst Expectations for September 30 Results

The Street is anticipating blockbuster financial results. Consensus estimates compiled by FactSet point to fiscal fourth-quarter revenue of $50.41 billion, representing a dramatic increase from $11.32 billion reported in the comparable period last year.

On the earnings front, adjusted EPS is expected to reach $30.89, soaring from $2.84 in the year-ago quarter. Such figures would represent one of the most dramatic year-over-year improvements in the company’s recent history.

The primary catalyst behind these projections is the persistent shortage of memory chips. AI infrastructure developers have absorbed all available capacity, with demand continuing to outpace supply as hyperscalers expand their data center footprints.

During its Q3 report, Micron’s leadership team stated they don’t anticipate relief from supply constraints until sometime after 2027. This extended timeline provides the company with substantial pricing leverage throughout the intermediate term.

Capacity Expansion Timeline Extends Into 2027 and Beyond

While Micron is investing in additional manufacturing capacity, these facilities won’t become operational until late 2027 at the earliest. Even when production begins, questions remain about whether the added supply will satisfy explosive AI-driven demand or create an oversupply scenario.

This ambiguity surrounding future supply-demand dynamics explains why shares trade at such a modest forward earnings multiple despite the robust earnings trajectory.

Barron’s has previously suggested the stock could potentially double from the $1,100 range. With shares currently trading below that level, this bullish thesis remains in play for optimistic investors.

Investors will get concrete updates when the company reports on September 30. In recent quarters, Micron has repeatedly exceeded expectations, and Wall Street consensus suggests this pattern will continue.

Friday’s closing price of $1,016.59 falls within a 52-week trading range spanning from $128.40 to $1,255.00.

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