Micron shares have risen around 220% so far this year, making it the fourth-best-performing S&P 500 stock in 2026. The article argues memory supply is tight, with Micron expecting shortages to worsen in 2027 and 2028, and SK Hynix saying it has pre-sold all the HBM and DRAM it can make through 2029. Micron plans six new production facilities, three by mid-2027 and three in 2028, though the article questions whether that will be enough for AI data center demand. The stock trades at 12 times trailing earnings and 5 times forward earnings, and the author says it would roughly quadruple if it returned to above 20 times trailing earnings. The author also argues AI hyperscalers' capex is justified by growth, but says he is not confident the stock will be fairly valued.
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