Micron Poised for Massive Growth as AI Boosts Memory Demand

Analyst predicts Micron's stock could reach $1,200 by the end of 2026 as memory shortage and AI boom drive earnings.

Published on Feb. 17, 2026

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Micron Technology, a leading producer of memory hardware like RAM and DRAM, is expected to see its stock price surge over the next few years as the demand for memory from the artificial intelligence (AI) industry skyrockets. With a memory shortage predicted to last until 2028 and Micron being one of only three major global memory producers, the company is well-positioned to capitalize on the AI boom and potentially see its share price exceed $1,200 by the end of fiscal 2026.

Why it matters

The growth of AI has made memory chips an increasingly critical component, as AI programs require large amounts of RAM and DRAM to store and process data. With Micron being a dominant player in the memory market and the only major American producer, its success is closely tied to the broader AI industry's expansion.

The details

Micron is refocusing its business entirely on the AI demand for memory, exiting the consumer PC memory market in late 2025. In January 2026, the company broke ground on a $100 billion semiconductor factory in upstate New York, which will be the largest semiconductor factory in the United States when completed. Micron's latest quarterly results were strong, with revenue up 57% year-over-year and DRAM accounting for 79% of that revenue. The company's gross margin, operating margin, and net margin were all above 30%, and it dramatically beat earnings expectations.

  • Micron exited the consumer PC memory market in late 2025.
  • In January 2026, Micron broke ground on a $100 billion semiconductor factory in upstate New York.
  • Micron reported its Q1 fiscal 2026 results on November 27, 2025.

The players

Micron Technology

A leading producer of memory hardware, including RAM and DRAM, and one of only three major global memory producers.

Nvidia

A technology company that became the world's most valuable company in 2025, with its market cap briefly exceeding $5 trillion, due to the growth of the artificial intelligence (AI) processor market.

Samsung

One of the three major global memory producers, along with Micron and SK Hynix.

SK Hynix

One of the three major global memory producers, along with Micron and Samsung.

Lip-Bu Tan

The CEO of Intel, who has stated that the current memory shortage is not expected to begin easing until 2028.

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What they’re saying

“We are currently in a memory shortage that Intel CEO Lip-Bu Tan doesn't think will begin to ease until 2028. Prices for RAM are expected to surge 50% over Q4 2025 prices by the end of Q1 2026.”

— Lip-Bu Tan, CEO, Intel (fool.com)

What’s next

Micron's $100 billion semiconductor factory in upstate New York is expected to be completed in the coming years, which could further boost the company's production capacity and market share in the memory chip industry.

The takeaway

Micron's strategic focus on the AI-driven memory market, combined with its dominant position as one of the few major global memory producers, positions the company for significant growth in the coming years. The potential for Micron's stock to reach $1,200 by the end of 2026 highlights the lucrative opportunities in the memory chip industry as AI continues to drive demand.