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Missed NVIDIA's 900% Run? Micron Could Be AI's Next Big Winner
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Key Takeaways
Micron reported fiscal Q3 2026 revenues of $41.46B, up 74% sequentially.
MU expects fiscal Q4 2026 revenues of about $50B as AI memory demand accelerates.
Micron's fiscal Q3 gross margin reached 84.6%, with operating cash flow of $25.39B.
With the advent of artificial intelligence (AI), NVIDIA Corporation’s (NVDA - Free Report) shares have soared 902.3% over the past five-year period, pushing the company’s market capitalization above $4 trillion, and making it one of the most valuable companies in the world. Incessant demand for NVIDIA’s cutting-edge AI hardware, including its Blackwell chips and graphics processing units (GPUs), has been a key catalyst behind the company’s noteworthy performance.
However, in recent times, NVIDIA’s shares have seen modest gains, as most of its solid quarterly performance has been priced into the stock. At the same time, investors remain skeptical about whether AI-related spending will increase fast enough to justify the company’s lofty valuation. Needless to say, the ongoing China-related export restrictions could weigh on profit margins and derail NVIDIA’s long-term growth prospects.
But investors shouldn’t be disheartened if they have missed out on NVIDIA’s explosive gains; instead, Micron Technology, Inc. (MU - Free Report) could be the next big opportunity for them. Micron stock appears well-poised to notch a new record high, eclipsing its previous peak of $1,213.56 set on June 22, 2026. Micron has delivered exceptional returns of more than 700% over the past year.
Micron’s recent strong earnings results, driven by unprecedented demand for its state-of-the-art high-bandwidth memory (“HBM”) chips used in AI servers, coupled with its strategic supply partnership with Anthropic, have positioned the Micron stock for a potential breakout above its previous high. Let us thus take a closer look at the two major factors underpinning Micron’s bullish outlook.
Micron’s AI Transformation: Record Results, Margin Surge, Growth Era
Micron’s latest blockbuster earnings results have reconfirmed that the company is no longer a cyclical memory stock; it has established itself as a vital supplier of AI infrastructure. For the fiscal third quarter of 2026, Micron reported revenues of $41.46 billion, way more than the $23.86 billion reported in the fiscal second quarter of 2026, and up 74% sequentially, according to investors.micron.com. Revenues also more than quadrupled from the same period a year earlier.
Even more encouraging is the company’s forward guidance, with Micron expecting revenues for the fiscal fourth quarter of 2026 to reach around $50 billion, indicating that demand for HBM chips used in AI servers is increasing at a faster pace than earlier market expectations. But it’s not just AI enthusiasm that is driving the company’s performance; Micron’s earnings and cash flows are increasing at a promising pace enough to justify its elevated valuation.
Micron’s profitability has reached exceptional levels, with its gross margin for the fiscal third quarter increasing to 84.6% from 37.7% a year ago, reflecting strong pricing power and the strategic importance of AI-focused memory products. Additionally, a robust operating cash flow of $25.39 billion during the quarter has strengthened the company’s balance sheet and has given enough financial flexibility to fund growth initiatives.
Meanwhile, a recent strategic collaboration with Anthropic will enable Micron to integrate its advanced memory solutions into future AI infrastructure and improve long-term demand-supply visibility. This partnership could act as a growth catalyst as the demand for Micron’s HBM chips and advanced memory solutions will increase.
Micron: The Next AI Winner After NVIDIA
As investors seek the next big AI beneficiary after NVIDIA, Micron has emerged as a strong contender. The company’s transformation as a key AI infrastructure supplier, supported by surging AI-driven HBM demand, explosive revenue growth, expanding margins, strong cash generation, and its Anthropic partnership, provides multiple catalysts for a significant upside.
With AI adoption still accelerating, Micron is all set to play a leading role in the next phase of the AI boom and deliver additional upside for investors. Micron currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
View the Zacks #1 Rank List
Image: Shutterstock
Missed NVIDIA's 900% Run? Micron Could Be AI's Next Big Winner
Key Takeaways
With the advent of artificial intelligence (AI), NVIDIA Corporation’s (NVDA - Free Report) shares have soared 902.3% over the past five-year period, pushing the company’s market capitalization above $4 trillion, and making it one of the most valuable companies in the world. Incessant demand for NVIDIA’s cutting-edge AI hardware, including its Blackwell chips and graphics processing units (GPUs), has been a key catalyst behind the company’s noteworthy performance.
However, in recent times, NVIDIA’s shares have seen modest gains, as most of its solid quarterly performance has been priced into the stock. At the same time, investors remain skeptical about whether AI-related spending will increase fast enough to justify the company’s lofty valuation. Needless to say, the ongoing China-related export restrictions could weigh on profit margins and derail NVIDIA’s long-term growth prospects.
But investors shouldn’t be disheartened if they have missed out on NVIDIA’s explosive gains; instead, Micron Technology, Inc. (MU - Free Report) could be the next big opportunity for them. Micron stock appears well-poised to notch a new record high, eclipsing its previous peak of $1,213.56 set on June 22, 2026. Micron has delivered exceptional returns of more than 700% over the past year.
Micron’s recent strong earnings results, driven by unprecedented demand for its state-of-the-art high-bandwidth memory (“HBM”) chips used in AI servers, coupled with its strategic supply partnership with Anthropic, have positioned the Micron stock for a potential breakout above its previous high. Let us thus take a closer look at the two major factors underpinning Micron’s bullish outlook.
Micron’s AI Transformation: Record Results, Margin Surge, Growth Era
Micron’s latest blockbuster earnings results have reconfirmed that the company is no longer a cyclical memory stock; it has established itself as a vital supplier of AI infrastructure. For the fiscal third quarter of 2026, Micron reported revenues of $41.46 billion, way more than the $23.86 billion reported in the fiscal second quarter of 2026, and up 74% sequentially, according to investors.micron.com. Revenues also more than quadrupled from the same period a year earlier.
Even more encouraging is the company’s forward guidance, with Micron expecting revenues for the fiscal fourth quarter of 2026 to reach around $50 billion, indicating that demand for HBM chips used in AI servers is increasing at a faster pace than earlier market expectations. But it’s not just AI enthusiasm that is driving the company’s performance; Micron’s earnings and cash flows are increasing at a promising pace enough to justify its elevated valuation.
Micron’s profitability has reached exceptional levels, with its gross margin for the fiscal third quarter increasing to 84.6% from 37.7% a year ago, reflecting strong pricing power and the strategic importance of AI-focused memory products. Additionally, a robust operating cash flow of $25.39 billion during the quarter has strengthened the company’s balance sheet and has given enough financial flexibility to fund growth initiatives.
Meanwhile, a recent strategic collaboration with Anthropic will enable Micron to integrate its advanced memory solutions into future AI infrastructure and improve long-term demand-supply visibility. This partnership could act as a growth catalyst as the demand for Micron’s HBM chips and advanced memory solutions will increase.
Micron: The Next AI Winner After NVIDIA
As investors seek the next big AI beneficiary after NVIDIA, Micron has emerged as a strong contender. The company’s transformation as a key AI infrastructure supplier, supported by surging AI-driven HBM demand, explosive revenue growth, expanding margins, strong cash generation, and its Anthropic partnership, provides multiple catalysts for a significant upside.
With AI adoption still accelerating, Micron is all set to play a leading role in the next phase of the AI boom and deliver additional upside for investors. Micron currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.