Wall Street Is Wrong About Micron Stock. Here's Why.

By Adria Cimino – Mar 3, 2026 at 1:15PM ESTKey PointsMicron Technology recently reported record revenue and forecasts continued growth.The company is benefiting from the artificial intelligence growth story.Micron Technology (MU 6.95%) has been a winning stock in recent times thanks to its key role in the artificial intelligence (AI) revolution. The company's shares have soared more than 300% over the past year as customers rush to Micron's memory and storage products. The company confirmed this trend in the latest quarter, with AI demand fueling record revenue and free cash flow. And Micron expects the momentum to continue. Now the key question is: Will stock performance follow? Analysts expect the shares to decline by about 4% from their level as of the March 2 market close over the coming 12 months. But I think Wall Street is wrong about this top AI player. Here's why. Image source: Getty Images. The need for memory As mentioned, Micron offers something that is in great need today and should continue to be a necessity in the future: memory. AI workloads will require plenty of it as the AI story shifts into the phase of inference, or the actual process AI goes through to solve complex problems. Today, cloud companies are building out their infrastructure to meet current and future demand from customers that need training, inference power, and more. And this should equal demand for Micron's products over the coming years. AI chip giant Nvidia has predicted that AI infrastructure spending could reach $4 trillion by the end of the decade. That could be good news for Micron. As mentioned, in the latest quarter Micron's revenue jumped more than 56% to $13 billion -- and the company predicts more growth in the coming quarter, with a forecast of more than $18 billion in revenue. Micron also expects gross margin of 67%, showing high profitability on sales. ExpandNASDAQ: MUMicron TechnologyToday's Change(-6.95%) $-28.67Current Price$384.00Key Data PointsMarket Cap$464BDay's Range$374.64 - $390.1152wk Range$61.54 - $455.50Volume929KAvg Vol33MGross Margin45.53%Dividend Yield0.11% More records on the horizon? "We anticipate substantial new records in revenue, gross margin, EPS, and free cash flow for both the second quarter and the full fiscal year 2026," the company said in its earnings presentation. Of course, supply constraints could weigh on growth to some degree. For example, the company said it may meet only half to two-thirds of midterm demand from certain major customers. But I see this as a temporary problem and one that doesn't change the overall positive story. On top of the earnings strength, investors may also like Micron's price tag these days. The stock trades at about 12x forward earnings estimates, a very reasonable price for a company well-positioned to benefit from the long-term AI growth story. As I mentioned above, Wall Street doesn't expect much movement from Micron shares over the coming 12 months. But I think that view is too pessimistic considering the company's momentum so far and the ongoing demand for memory. Instead, Micron may have what it takes to deliver a winning year in 2026.Read NextMar 3, 2026 •By Keith NoonanWhy Micron Stock Is Plummeting TodayMar 3, 2026 •By Bram BerkowitzBillionaire Investor David Tepper Eliminated Nearly All of Appaloosa Management's Bank Stocks and Increased its Position in One of the World's Largest AI Memory Companies by 200%Mar 3, 2026 •By Keithen DruryBillionaire David Tepper Sold Nvidia and Amazon Stock in Q4.

Does He Know Something We Don't?Mar 2, 2026 •By David Jagielski, CPAHere's Why Some Analysts Still Think Micron Technology's Stock Can Surge HigherFeb 28, 2026 •By Harsh ChauhanWhere Will Micron Technology Stock Be in 3 Years?Feb 27, 2026 •By Adam SpataccoHow Much Higher Will Micron Stock Go in 2026?About the AuthorAdria Cimino is a contributing Motley Fool stock market analyst covering healthcare, technology, and consumer goods sectors. Prior to The Motley Fool, Adria covered the European stock market and U.S. stocks pre-market trading for Bloomberg News, Bloomberg TV, and Bloomberg Radio for more than a decade. Earlier in her career, she wrote about biotech, medtech, and technology companies in Boston for Mass High Tech, an American City Business Journals publication. She holds a bachelor’s degree in mass communications from the University of South Florida.TMFAdriaCiminoX@adria_in_parisStocks MentionedMicron TechnologyNASDAQ: MU$384.79(-6.76%)-$27.88NvidiaNASDAQ: NVDA$180.71(-0.97%)-$1.77*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.