Micron's Setup Sweetens Despite The Current Market Meltdown

2026-03-07 15:08:23

Micron (MU) is approaching its 50-day moving average amid the recent market meltdown and could offer a new buy point if the stock rebounds from that level. The memory-chip leader is coming off a year of spectacular performance while following it up with some heady year-to-date gains.

After rocketing 239% in 2025, Micron stock has gained 39% thus far in 2026, as of Thursday. It holds the top spot in Investor’s Business Daily’s IBD 50 list of growth stocks.

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For investors now on the sidelines, Micron’s all-time high of 455.50 would be a natural buy point as the stock carves a somewhat deep flat base amid its recent pullback, IBD MarketSurge shows.

The memory-chip maker crushed analyst estimates for its fiscal first quarter, posting triple-digit earnings growth for the fourth time in four quarters. Earnings of $4.78 a share rocketed 167% higher while sales of $13.6 billion grew 57%. Soaring memory prices amid a supply crunch helped boost margins, up 66% for the quarter.

Analysts polled by FactSet had estimates of $3.96 a share on $12.9 billion in sales. The company also declared a dividend of 11.5 cents a share, payable to shareholders on record as of Dec. 29.

Micron makes two types of memory chips: the dynamic random-access memory, or DRAM chip and Nand flash chips. While the former is used for short-term storage in PCs, Nand chips enable longer-term storage.

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The company has seen demand surge amid the artificial intelligence boom, with data centers and hyperscalers looking for high bandwidth memory solutions.

Expanding U.S. Manufacturing

Meanwhile, to address a shortage in memory, Micron has been expanding its advanced wafer fabrication capabilities in several ways this year.

It announced a $24 billion multiyear Nand-focused project at its existing facility in Singapore. The plant is expected to start production in the latter half of 2028.

It also inked a deal to buy Powerchip Semiconductor Manufacturing, a Taiwan-based fab, for $1.8 billion to increase its DRAM footprint. The deal is expected to close in the second half of 2026 with production expected to start a year later.

The company also has increased domestic manufacturing. It announced its $100 billion plant in New York will start churning out products in 2030. The project is expected to be the largest semiconductor plant in the U.S.

Micron is due to report second-quarter results on March 18. Analysts anticipate 452% growth in earnings to $8.61 per share. Sales estimates of $19 billion suggest a 57% increase from the prior year.

Full-year profit estimates for 2026 point to a 316% surge, followed by a 38% increase in 2027.

Micron Stock: Ideal All-Round Rating

Micron leads the computer-data storage group, according to IBD Stock Checkup. The stock holds an ideal Composite Rating of 99 as its performance over the past 52 weeks also places it among the top 1% of stocks in the IBD database in terms of relative strength.

Its Earnings Per Share Rating of 81 tops the recommended threshold 80 rating for growth stocks. Mutual funds have been buyers of the stock over the past 13 weeks, giving Micron stock an Accumulation/Distribution Rating of B-.

Meanwhile, the Up/Down Volume Ratio of 1.4 also indicates strong demand for the stock over the past 50 days. Institutional ownership sits at 51% of outstanding shares with more funds buying shares over the three most recent quarters.

In the IBD mutual fund index, the Fidelity Contrafund (FCNTX) holds shares of Micron stock.

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