Is Micron Stock a Buy at $1,000?
Written by Will Ebiefung for The Motley Fool -> Computer storage has emerged as one of the key bottlenecks in making bigger and better generative AI models. Micron has already made life-changing wealth for its early buyers. But macroeconomic conditions are worsening. On June
Computer storage has emerged as one of the key bottlenecks in making bigger and better generative AI models.
Micron has already made life-changing wealth for its early buyers.
On June 3, Micron Technologies (NASDAQ: MU) hit an all-time high of $1,079. The move capped off months of explosive gains as investors started pivoting away from chipmakers like Nvidia in favor of the memory hardware producers poised to benefit from the changing dynamics of artificial intelligence (AI) infrastructure demand.
While graphics processing units (GPUs) are still important, data center clients are recognizing they need huge amounts of storage to keep up with the requirements of increasingly complex AI models. Let's dig deeper to see how much longer this trend might last and decide if Micron stock can maintain its explosive rally or will eventually slow down.
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As of June 2026, the global memory hardware shortage remains in effect, as data center clients continue to buy high-bandwidth memory (HBM) and advanced DRAM practically as fast as it can be produced. Suppliers like Micron are shifting production capacity toward these parts of the market, leading to shortages of less advanced hardware.
The memory crunch is affecting many parts of the economy. This month, groups representing automakers and retailers sent a letter to the U.S. Treasury and Commerce departments warning of "significant and sustained near-term price increases" for a variety of consumer goods. But while they see the issue as a challenge for their supply chains, it has become a historic windfall for Micron and other industry leaders.
Second-quarter revenue soared a blistering 196% year over year to $23.86 billion, driven by strength across Micron's operating segments. Meanwhile, gross margins rose from 36.8% to 74.7% -- a level typically seen in software companies that don't even sell physical products. The combination of soaring revenue and margins drove the company's profits to explode 770% to $13.78 billion.
