Record AI-Driven Data Center Revenue Might Change The Case For Investing In Micron Technology (MU)

• Micron Technology reported quarterly and full-year earnings that exceeded Wall Street expectations, driven by record revenue from data center and AI memory demand, and provided strong earnings guidance for its upcoming quarter.
• The company highlighted that data center revenue made up 40% of its fourth-quarter total, reflecting the impact of the AI infrastructure boom on Micron's business mix and long-term outlook.
• We'll take a look at how Micron's strong data center momentum supports and potentially strengthens its investment narrative amid the AI-driven memory surge.

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Micron Technology Investment Narrative Recap

To be a shareholder in Micron Technology, you need to believe in the long-term strength of the AI and data center memory market, and Micron's ability to convert record demand into sustained earnings and margin growth. The latest earnings release and strong guidance further highlighted AI-driven tailwinds as the key short-term catalyst. However, the competitive risk from major rivals like Samsung and SK Hynix in the high-bandwidth memory segment remains a persistent and material factor that could pressure pricing and limit upside if the environment changes.

Among recent announcements, Micron’s upbeat Q1 2026 guidance, projecting revenue of US$12.50 billion ± US$300 million and diluted EPS of US$3.56 ± US$0.15, stands out as directly relevant. This outlook signals management’s confidence in continued robust demand, particularly in the data center and AI segments, which are crucial for supporting Micron’s improved margin and earnings profile in the near term.

But for investors, it’s equally important to keep in mind that intensifying competition from global peers could still...

Read the full narrative on Micron Technology (it's free!)

Micron Technology's outlook anticipates $53.6 billion in revenue and $13.6 billion in earnings by 2028. This scenario is based on a 16.6% annual revenue growth rate and an increase in earnings of $7.4 billion from the current $6.2 billion.

Uncover how Micron Technology's forecasts yield a $159.91 fair value, a 4% downside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have posted 53 fair value estimates for Micron ranging from US$67.67 to US$195.67 per share. With competitive threats still top of mind for many, it’s clear that expectations for Micron’s future performance differ widely, be sure to compare several viewpoints before weighing your own.

Explore 53 other fair value estimates on Micron Technology - why the stock might be worth as much as 18% more than the current price!

Build Your Own Micron Technology Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Micron Technology research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Micron Technology research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Micron Technology's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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