Micron: DDR5 Prices Surge +400% Since September And Could Rise Further In 2026

Johnny Zhang, CFA2.57K FollowersFollow5ShareSavePlay(10min)Comments(9)SummaryMicron is still a Strong Buy, as long as current AI demand and supply constraints persist without any exogenous shocks.79% of total revenue comes from DRAM, whose prices have surged more than 400% since September 2025, and analysts expect they could double again in 2026.Gross margin has surged to a record 68%, and EPS is guided to grow nearly 440% YoY in 2Q, as MU has gained more market share in DRAM and HBM.Micron announced a New York "megafab" site with the goal of producing 40% of its DRAM in the U.S., along with a $24 billion capacity expansion plan in Singapore.MU stock's forward non-GAAP P/E is 12x, down from 14x despite a 60% rally since my last rating, indicating strong earnings growth potential in 2026.JHVEPhoto/iStock Editorial via Getty Images Still Trading at 12x forward P/E Micron Technology, Inc.'s (MU) stock has rallied +60% since my last rating. The key catalyst behind this relentless rally is the supply constraint on memory chips, whichThis article was written byJohnny Zhang, CFA2.57K FollowersFollowI'm specialized in fundamental equity research, global macro strategy, and top-down portfolio construction.Analyst’s Disclosure: I/we have a beneficial long position in the shares of MU:CA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.