Micron’s Rise: A Slow Bloom in Barren Fields

Micron (MU +5.93%) has been climbing, a steady hand reaching for purchase on a steep slope. Today, it gained ground, nudged upward by the assessment of Phillip Securities’ Yik Ban Chong, who sees a price of $500 on this $438 stock. It’s a hopeful sign, a small green shoot in what feels, lately, like a dustbowl of uncertainty.

The Memory of Things to Come

There’s been talk, of course, of NAND memory driving this surge. But Chong is looking past the immediate bloom, focusing instead on DRAM, specifically the high-bandwidth variety. It’s a shift in focus, a recognition that the real strength lies not in fleeting trends, but in the foundational stuff.

Micron’s high-bandwidth memory – HBM – is in demand, that much is clear. It’s baked into Nvidia’s (NVDA 1.04%) Blackwell GPU and AMD’s (AMD +5.07%) MI355 GPU. This isn’t just about numbers on a screen; it’s about the engines that drive the world, the tools that build the future. And when those engines need power, they turn to memory. This demand, as you’d expect, is pushing DRAM prices toward levels we haven’t seen since 2019.

Looking ahead, Chong anticipates Micron’s HBM4 gaining traction in 2026, wresting market share from SK Hynix. It’s a quiet struggle for dominance, fought in silicon and code. Meta (META 1.52%) and Microsoft (MSFT 1.28%) are both planning increased capital spending – 76% and 90% respectively – which will, naturally, amplify the demand for Micron’s product. It’s a simple equation, really: more building, more need.

Chong forecasts a 56% rise in DRAM prices in fiscal 2026. A bold claim, perhaps, but not entirely unreasonable in a world increasingly reliant on data.

A Worthy Investment?

Micron stock has climbed more than 360% in the last 365 days. A remarkable run, and one that invites skepticism. But sometimes, the most obvious path is the right one.

The stock carries a high price – nearly 40 times trailing earnings. But look closer. With prices, sales, and margins all on the rise, Micron now trades at barely 13 times forward earnings, and less than 11 times earnings forecasts for 2027. It’s a different picture when you adjust for the light.

Earnings are expected to grow at nearly 60% annually over the next five years. That’s a steep climb, and there will be headwinds, no doubt. But if Micron can maintain that pace, this stock appears, to my eye, to be a worthy investment. It’s not a gamble, not exactly. It’s a bet on memory, on the enduring need to hold onto the things that matter.

2026-02-02 20:33

The Memory of Things to Come

A Worthy Investment?

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