Micron stock price was in a relentless bull run in 2025, making it the top gainer in the Nasdaq 100 and S&P 500 indices. It jumped to a record high of $294, much higher than the year-to-date low of $62, with its market capitalization rising to over $331 billion.

MU’s jump mirrored that of other companies in the memory industry. For example, in Japan, the Kioxia stock price jumped by 540% this year, signaling that the AI boom is alive and well. Similarly, companies like Sandisk, Western Digital, and Seagate were among the top companies in the S&P 500 Index  

Micron stock price surge was driven by strong revenue growth 

Micron has been one of the fastest-growing companies in the tech industry, with its annual revenue rising to $37 billion in the last financial year from $25.1 billion in the previous year.

The growth trajectory accelerated in the last quarter, with its revenue rising to $13.6 billion from $8.7 billion in the same period last year. This revenue growth was higher than what analysts were expecting, continuing its trend of beating estimates.

Most of its revenue growth was because of the soaring demand for its AI cloud business, which has continued to boom in the past few years as the number of new data centers surge in the US and other countries. 

This growth will likely continue rising as analysts predict that hyperscalers will boost its spending in the coming year. Hyperscalers like Microsoft, Amazon, and Google will boost their capital expenditure spending to between $525 billion and $602 billion in the coming year.

Gartner expects that AI hardware spending will jump to $582 billion in 2026, with most of this happening in areas like storage, servers, and networking equipment.

The most recent results showed that the company’s cloud memory business unit made $5.28 billion in the first quarter of the current financial year, up sharply from the $2.6 billion it made in the same period last year. Its operating margin rose to 55% from that previous 40%.

Meanwhile, the core data center segment made $2.3 billion, up slightly from the $2.2 billion it made last year, while the mobile and client, automotive, and embedded segments made $4.2 billion and $1.73 billion. 

READ MORE: How Micron stock is uniquely positioned to benefit from next phase of AI

Revenue and profitability growth to continue

The management and analysts believe that the company has more room to grow in the coming quarters as demand keeps rising. In its guidance, Micron said that its second-quarter revenue will be $18.7 billion, while its gross margin will improve to 67%. 

Data compiled by Yahoo Finance shows that the average estimate among analysts is that its revenue will jump by 132% to $18.72 billion. 

These estimates are likely conservative as the company has proven over time. The annual revenue is expected to come in at $73.98 billion, up by 97% from the same period last year. 

Most importantly, the earnings per share is expected to come in at $32.14, up sharply from the previous $8.29. It will then jump to $38.48

Still, despite these strong metrics, there are signs that the company is still cheap. It has a B+ valuation rating on Seeking Alpha, with a forward price-to-earnings ratio of 9.14 being lower than the sector median of 31.

Micron valuation metrics | Source: Seeking Alpha

The company has a forward revenue growth estimate of 97% and a profit margin of 28%, giving it a rule-of-40 multiple of 128%, meaning that its growth and profitability focus are balanced.

Micron share price technical analysis 

MU stock chart |Source: TradingView 

The daily timeframe chart shows that the MU stock price has been in a strong uptrend in the past few years and is now at its all-time high of $295. 

It recently moved above the important support level at $264, its highest swing in November this year, a move that invalidated the double-top pattern.

Micron stock has remained above all moving averages, and has recently formed a bullish engulfing pattern, where a bullish candle follows a small red one.

Therefore, the most likely scenario is where the stock continues rising, with the immediate target being at $300 followed by $350. 

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