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Wednesday, Micron, the AI memory leader, crushed Wall Street's earnings expectations on every metric. Once again, the quarter delivered record profits and triple-digit revenue and earnings growth. Thanks to soaring AI demand, Micron has become not only one of the most profitable companies in AI but also one of the most profitable on Wall Street. In addition to the blockbuster quarter, Micron's Q1 2027 guidance did not disappoint, with CEO Sanjay Mehrotra stating that fiscal 2027 will be even stronger.
Micron reported earnings per share of $33.42, beating Wall Street's already lofty expectations by 5.73%. Over the past four quarters, Micron has beaten Zacks Consensus Analyst Estimates by a juicy 21% on average. Meanwhile, last night's earnings release marks the 14th consecutive quarter that Micron has beaten Zacks Consensus Analysts' Estimates.
Can Micron Shares Still Move Higher?
Over the past 5 years, Micron shares have delivered investors scorching-hot returns, surging over 1,300%. However, this latest earnings report suggests shares still have room to run. Below are 5 reasons to own Micron shares into 2027, including:
Despite its Performance, Micron is Extremely Cheap
Next quarter, Micron is expected to generate more quarterly profit than NVIDIA did in the first quarter of 2026. At the time, NVIDIA generated $40 billion in quarterly profit and had a market cap of $4.8 trillion. Conversely, Micron is expected to do the same, yet has a market cap of just $1 trillion. With a reasonable price-to-earnings ratio of 23.61x, it's hard for investors to argue that Micron is overvalued.
Micron Enjoy Incredible Revenue Visibility
According to management, Micron has 26 multi-year take-or-pay agreements, covering more than 35% of expected revenue through 2030. Customer financial commitments have soared to $32 billion from $22 billion last quarter, with the vast majority in cash deposits. Revenue visibility of this magnitude is extremely rare on Wall Street.
Micron Supply/Demand Imbalance is Intact
Last night, Micron confirmed that the DRAM supply/demand imbalance remains, saying:
"We do not have line-of-sight to when supply and demand will return to balance."
In other words, Micron can maintain its pricing power and best-in-breed gross margins.
Physical AI Will Add Another Layer of Demand
Even before the physical demand wave has begun, Micron has delivered spectacular earnings growth. However, Micron expects humanoid robot production to add another layer of demand. Micron confirmed that physical AI can become a significant driver of memory and storage demand by the end of this decade.
Bottom Line
Wednesday, Micron delivered a record-shattering quarter highlighted by explosive earnings growth, unmatched revenue visibility, and a compelling valuation.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
View the Zacks #1 Rank List
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Zacks Investment Ideas feature highlights: Micron and NVIDIA
For Immediate Release
Chicago, IL – October 2, 2026 – Today, Zacks Investment Ideas feature highlights Micron (MU - Free Report) and NVIDIA (NVDA - Free Report) .
Crushing Expectations: Why Micron Remains Undervalued
Micron Reports Blowout Earnings
Wednesday, Micron, the AI memory leader, crushed Wall Street's earnings expectations on every metric. Once again, the quarter delivered record profits and triple-digit revenue and earnings growth. Thanks to soaring AI demand, Micron has become not only one of the most profitable companies in AI but also one of the most profitable on Wall Street. In addition to the blockbuster quarter, Micron's Q1 2027 guidance did not disappoint, with CEO Sanjay Mehrotra stating that fiscal 2027 will be even stronger.
Micron reported earnings per share of $33.42, beating Wall Street's already lofty expectations by 5.73%. Over the past four quarters, Micron has beaten Zacks Consensus Analyst Estimates by a juicy 21% on average. Meanwhile, last night's earnings release marks the 14th consecutive quarter that Micron has beaten Zacks Consensus Analysts' Estimates.
Can Micron Shares Still Move Higher?
Over the past 5 years, Micron shares have delivered investors scorching-hot returns, surging over 1,300%. However, this latest earnings report suggests shares still have room to run. Below are 5 reasons to own Micron shares into 2027, including:
Despite its Performance, Micron is Extremely Cheap
Next quarter, Micron is expected to generate more quarterly profit than NVIDIA did in the first quarter of 2026. At the time, NVIDIA generated $40 billion in quarterly profit and had a market cap of $4.8 trillion. Conversely, Micron is expected to do the same, yet has a market cap of just $1 trillion. With a reasonable price-to-earnings ratio of 23.61x, it's hard for investors to argue that Micron is overvalued.
Micron Enjoy Incredible Revenue Visibility
According to management, Micron has 26 multi-year take-or-pay agreements, covering more than 35% of expected revenue through 2030. Customer financial commitments have soared to $32 billion from $22 billion last quarter, with the vast majority in cash deposits. Revenue visibility of this magnitude is extremely rare on Wall Street.
Micron Supply/Demand Imbalance is Intact
Last night, Micron confirmed that the DRAM supply/demand imbalance remains, saying:
"We do not have line-of-sight to when supply and demand will return to balance."
In other words, Micron can maintain its pricing power and best-in-breed gross margins.
Physical AI Will Add Another Layer of Demand
Even before the physical demand wave has begun, Micron has delivered spectacular earnings growth. However, Micron expects humanoid robot production to add another layer of demand. Micron confirmed that physical AI can become a significant driver of memory and storage demand by the end of this decade.
Bottom Line
Wednesday, Micron delivered a record-shattering quarter highlighted by explosive earnings growth, unmatched revenue visibility, and a compelling valuation.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.