Why Micron (MU) Stock Is Up Today

What Happened?

Shares of memory chips maker Micron (NYSE:MU) jumped 7.3% in the afternoon session after the stock's positive momentum continued as the company reported record-breaking first-quarter fiscal 2026 results and provided a significantly stronger-than-expected forecast for the second quarter, fueled by soaring demand for its artificial intelligence (AI) memory chips. 

Micron's revenue for the first quarter reached a record $13.6 billion, a 57% increase year-over-year, beating analysts' consensus of $13.0 billion. Earnings per share came in at $4.78. The company's outlook was even more impressive, with an expected revenue of about $18.7 billion for the next quarter, far surpassing the $14.3 billion Wall Street had anticipated. The strong performance was driven by booming demand for memory products, especially high-bandwidth memory, essential for AI applications. The company also indicated that its high-end memory supply for 2026 was already fully booked, with the broader industry facing tight supply constraints. This combination of high demand and limited supply led to the stock hitting an all-time high.

The shares closed the day at $266.01, up 7.1% from previous close.

Is now the time to buy Micron? Access our full analysis report here.

What Is The Market Telling Us

Micron’s shares are extremely volatile and have had 37 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock gained 11.1% on the news that the company reported strong fourth-quarter results and provided a much better-than-expected forecast for the upcoming quarter. 

The company's revenue of $13.64 billion and adjusted earnings per share of $4.78 both surpassed Wall Street's expectations. The strong results were accompanied by a significant expansion in profitability, with its operating margin increasing to 45%, up from 25% in the same quarter last year, suggesting strong pricing power. Looking ahead, Micron's guidance was particularly impressive, with its first-quarter revenue forecast of $18.7 billion coming in 29.3% above analysts' estimates. This upbeat outlook reinforced investor optimism about continued strong demand for its memory chips.

Micron is up 205% since the beginning of the year, and at $266.49 per share, has set a new 52-week high. Investors who bought $1,000 worth of Micron’s shares 5 years ago would now be looking at an investment worth $3,729.

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