This Growth Stock Continues to Crush the Market

By Geoffrey Seiler – Feb 21, 2026 at 5:15AM ESTKey PointsMicron is a huge beneficiary of the current supply-and-demand environment for memory.The market looks like it is in the early stages of a supercycle, and the stock is cheap.We’re bullish on these 10 stocks ›NASDAQ: MUMicron TechnologyMarket Cap$482BToday's Changeangle-down(2.36%) $9.85Current Price$427.20Price as of February 20, 2026 at 3:58 PM ETCan Micron's momentum this year continue?With its stock already up 40% year to date, one of the hottest growth stocks right now is Micron Technology (MU +2.36%). The memory maker is benefiting from what looks like a supercycle for DRAM (dynamic random access memory) and NAND (flash memory). Best of all, this looks like it is just the start of the cycle. Micron derives about 80% of its revenue from DRAM, which is used for short-term memory needs, given its speed, and the rest from NAND, which is used for long-term memory storage. The DRAM market is getting a huge lift from the artificial intelligence (AI) infrastructure buildout, as graphics processing units (GPUs) and other AI chips need to be packaged with a special form of DRAM called high bandwidth memory (HBM) for optimal performance. With the AI data center market booming, demand for HBM, not surprisingly, has also skyrocketed. Image source: Getty Images. However, there is another factor at play that has tightened the DRAM market even further. HBM requires upwards of three times the wafer capacity of ordinary DRAM, which is greatly impacting the supply chain for the entire DRAM market. This has left the entire market in short supply, causing prices to surge. At the same time, the NAND market is also in short supply. After a period of oversupply and negative gross margins for flash memory, following a big pull-forward in demand for electronics coming out of the pandemic, the big three memory makers slashed NAND production and turned their focus to DRAM. However, AI also needs massive, solid-state drives containing flash memory to hold training data, so demand for NAND has surged following production cuts. Given the superior unit economics and long-term contracts tied to HBM, most big memory makers have been in no rush to increase NAND capacity and have just been enjoying the rising prices. ExpandNASDAQ: MUMicron TechnologyToday's Change(2.36%) $9.85Current Price$427.20Key Data PointsMarket Cap$482BDay's Range$415.00 - $430.5852wk Range$61.54 - $455.50Volume1.5MAvg Vol32MGross Margin45.53%Dividend Yield0.11% A memory market winner Micron, meanwhile, is in the sweet spot, enjoying the current highly favorable conditions of the memory market. It's essentially sold out of its HBM capacity for the year and is working to increase its production to meet the 40% annual growth it sees for HBM over the next few years. Meanwhile, higher prices aren't just leading to surging revenue; they're also resulting in ballooning gross margins. Last quarter, Micron's revenue soared 57%, while its gross margins expanded from 38.4% to 56%. With the current supply situation for DRAM and NAND expected to remain tight for the foreseeable future, and HBM contracts locked up for the long term, Micron is in a strong position moving forward. Meanwhile, the stock is still cheap, trading at a forward P/E of 12 times fiscal year 2026 analyst estimates (ending August 2026) and just above 9 times the fiscal 2027 consensus. With the HBM market looking more like a long-term structural tailwind than simply part of a normal cyclical cycle, Micron looks like an attractive AI stock to own at current levels.Read NextFeb 20, 2026 •By Adam SpataccoTop Stocks to Double Up on Right NowFeb 19, 2026 •By Jose NajarroMicron Shareholders Received Amazing News at a Recent Investor ConferenceFeb 19, 2026 •By Marc Guberti3 No-Brainer AI Stocks to Buy Right NowFeb 19, 2026 •By Sean WilliamsNvidia Is No Longer a Top-5 Holding for Billionaire David Tepper's Appaloosa -- Here's the Unstoppable AI Stock That Replaced ItFeb 19, 2026 •By Harsh ChauhanCould Investing $10,000 in Micron Technology Make You a Millionaire?Feb 19, 2026 •By Keith SpeightsIs Micron Technology a Buy?About the AuthorGeoffrey Seiler is a contributing Motley Fool stock market analyst covering technology, consumer goods, healthcare, energy, and materials stocks. Prior to The Motley Fool, Geoffrey was a senior equity analyst at Raging Capital Management, a $600 million long-short hedge fund. He holds a bachelor’s degree in history from Haverford College.TMFFindProfitStocks MentionedMicron TechnologyNASDAQ: MU$427.20 (+2.36%) $+9.85*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.