Micron (MU) stock has more than tripled in 2026, making it the fourth-best performer in the S&P 500 this year. The article argues that the memory chip shortage driven by AI demand is far from over, since Micron's management expects market conditions in 2027 and 2028 to be even tighter than in 2026. New foundry lines coming online in 2027 could let Micron sell more chips at today's higher prices, which the author says will drive significant profit growth. Micron reported fiscal 2026 EPS of $75.52 and management estimates $176.55 for fiscal 2027; with the stock at about 12 times earnings versus a typical level near 20, the author considers it undervalued.
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