Micron Technology's stock is up about 382% over the past year versus 16% for the S&P 500, yet the article argues it could still hit new highs because much of its future demand is already locked in. Micron has signed 26 long-term take-or-pay agreements covering more than a third of its revenue through 2030, and much of its high bandwidth memory is already sold out for 2027, with CEO Sanjay Mehrotra saying next year's volume commands prices 'much higher than 2026 prices.' The company expects about $61.5 billion in revenue in its current fiscal quarter, up from $54 billion, with an 86% gross margin, and Mehrotra expects supply-demand conditions to be even tighter through 2028 than in 2026. The stock trades at just over 5 times fiscal 2027 earnings estimates, while analysts expect EPS to more than double to $176 in fiscal 2027 and rise 17% to $206 in fiscal 2028. The article acknowledges memory is a boom-and-bust business and the stock is volatile.
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