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Chris Neiger, The Motley Fool
Sat, May 9, 2026 astatine 9:20 AM CDT 4 min read
Shares of Micron Technology (NASDAQ: MU) person soared by 710% implicit the past 12 months arsenic the institution has benefited from the rising request for representation processors utilized successful artificial quality (AI) information centers. Even amid the surging stock prices of galore AI stocks, Micron's show stands retired among the crowd.
Technology companies -- including Alphabet, Amazon, Microsoft, Meta Platforms, and others -- are committing to eye-watering amounts of AI superior expenditures, which volition adhd up to $750 cardinal this twelvemonth alone, arsenic they absorption connected offering the champion AI services and models. That pursuit could substance adjacent higher representation income volumes successful the coming years.
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Amazingly, adjacent aft its singular rise, Micron's banal inactive looks comparatively cheap. Here's what imaginable investors should know.
Making hay portion the AI prima shines
As tech companies accelerate the build-out of their AI infrastructure, Micron is benefiting from a surge successful request for its representation chips. In its fiscal 2026 2nd quarter, which ended Feb. 26, the company's income roseate 196% twelvemonth implicit twelvemonth to $23.9 billion, and non-GAAP (generally accepted accounting principles) net spiked 682% to $12.20 per share.
And the bully times whitethorn not beryllium ending anytime soon. Both Meta and Alphabet precocious said they're expanding their superior expenditures this year, and Alphabet's enactment has already said it volition apt walk much connected capex successful 2027 than the estimated $190 cardinal it expects to walk this year.
The representation concern has historically been highly cyclical. Micron has experienced galore roar periods erstwhile request exceeded what the manufacturers could supply, followed by reversals arsenic accumulation capableness expansions crossed the manufacture overshot, resulting successful surpluses and crashing prices. And portion that could yet hap for AI representation chips arsenic well, Micron's absorption believes that what the institution is experiencing with the AI megatrend is unprecedented.
For example, Micron's absorption noted connected the second-quarter net telephone that it had received its first-ever five-year declaration for representation processors. That's an unusually agelong lawsuit committedness successful this space.
As Micron CEO Sanjay Mehrotra summed up the shift: "AI hasn't conscionable accrued request for representation -- it has fundamentally recast representation arsenic a defining strategical plus successful the AI era."
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