Micron Just Did Something Even Nvidia Hasn't Done. Is the AI Stock a Buy?

By Jeremy Bowman – Mar 19, 2026 at 1:15PM ESTKey PointsMicron's revenue tripled, and earnings per share jumped by more than 8x.It topped Nvidia in a key profit metric.The stock sold off after hours, showing investors are skeptical about long-term growth.Micron (MU 3.79%) just delivered another blockbuster earnings report. Investors had expected another growth surge from the memory chip leader, but Micron easily exceeded expectations. Revenue nearly tripled, jumping 196% to $23.9 billion, which was well ahead of the consensus at $19.2 billion. That growth was driven by soaring demand for memory in the AI build-out and a supply crunch that's driving up prices for memory chips. While revenue tripled in the quarter, profits were up considerably more, as gross margin more than doubled, jumping from 36.8% to 74.4%, and net income jumped 771% to $13.8 billion, or $12.07 per share. After adjustments, EPS came in at $12.20, easily beating the consensus estimate of $8.65. Pricing dynamics for Micron were strong enough that operating margin more than tripled to 67.6%, a level that even Nvidia (NVDA 1.20%) has never reached. Like Micron, Nvidia has also seen profit margins soar, and it's delivered phenomenal results with its operating margin reaching a record of 65% in its most recent quarter. That achievement shows that Micron is now seeing a similar windfall to Nvidia, which explains why the stock has surged over the past year. Image source: Getty Images. Is Micron's AI boom sustainable? Despite Micron's phenomenal results, Wall Street seems to believe that its margins may be peaking as the stock actually fell on the news, trading down 3% after hours. Memory is notoriously cyclical, prone to shortages and inventory gluts, and Micron has lost billions of dollars during the bottom of the cycle. The AI cycle is the biggest one yet, and it's unclear how long Micron will be able to deliver bumper profits. Supply and demand dynamics will eventually shift, either as more supply comes online or as demand cools once the data center build-out peaks. However, the boom could last longer than investors seem to believe, at least based on the post-earnings sell-off. Micron's fiscal third-quarter guidance calls for another top-line surge and even wider margins. The company forecast revenue of around $33.5 billion, or up 260%, gross margin of 81%, up from 74.4% in the second quarter, and adjusted earnings per share of $18.75-$19.55, up from just $1.91 a year ago. CEO Sanjay Mehrotra said the company expects DRAM and NAND chips to remain tight beyond 2026. Bit shipments in both categories are expected to grow by around 20%, showing the vast majority of Micron's revenue growth is due to higher prices, though that also reflects more advanced products. To capitalize on the AI boom, Micron expects to spend more than $25 billion on capital expenditures this year, and that includes its acquisition of a manufacturing facility in Taiwan from Powerchip Semiconductor Manufacturing Corporation. The company is making plans to ramp up production in 2027, showing confidence that the AI boom will continue. ExpandNASDAQ: MUMicron TechnologyToday's Change(-3.79%) $-17.50Current Price$444.23Key Data PointsMarket Cap$520BDay's Range$421.23 - $457.2052wk Range$61.54 - $471.34Volume2.3MAvg Vol35MGross Margin45.53%Dividend Yield0.10% Is Micron a buy? Micron is a challenging stock to value, as investors are anticipating another cycle in memory, and cyclical stocks tend to peak before the businesses do. However, Micron's results, guidance, and management commentary indicate the momentum is still accelerating, and the stock is now dirt cheap on a forward basis, trading at a price-to-earnings ratio of less than 10. At this point, though, with the stock up 400% over the last year, Micron may need more than just blowout numbers. It needs confidence in the AI trade to return, and it's unclear whether that will happen. Even Nvidia CEO Jensen Huang's forecast that his company would bring in $1 trillion in revenue over the next two years did little to move the stock. Still, Micron's growth rate and valuation make it uniquely attractive, and the company is making investments to grow the business over the long term, regardless of what happens with the memory cycle. Despite the post-earnings sell-off, Micron still looks like a buy. It won't be the next Nvidia, even as it's topped the AI leader in operating margin, but it's in the right place at the right time. It's clearly executing effectively, and analysts can't keep up with its growth.Read NextMar 19, 2026 •By Rich SmithWhy Micron Stock Crashed After Blowout EarningsMar 18, 2026 •By Danny Vena, CPAMicron Stock Investors Just Got Spectacular News From CEO Sanjay MehrotraMar 18, 2026 •By Howard SmithStock Market Today, March 18: Micron Technology Holds Steady as Investors React to Key Earnings Report on AI Memory DemandMar 18, 2026 •By David Jagielski, CPAWill Micron Technology Be the Next Tech Stock to Reach a $1 Trillion Market Cap?Mar 17, 2026 •By Eric TrieStock Market Today, March 17: Micron Advances Ahead of Earnings as Tight HBM Supply Lifts AI Memory OutlookMar 16, 2026 •By Danny Vena, CPAShould You Buy Micron Stock Before Thursday? Here's What History and Wall Street SuggestAbout the AuthorJeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011.

Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.TMFHoboX@TMFBowmanStocks MentionedMicron TechnologyNASDAQ: MU$443.83(-3.88%)-$17.90NvidiaNASDAQ: NVDA$178.30(-1.16%)-$2.10*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.