Micron Technology is being sized up for a run to $1,300 per share by the end of 2026, a move that would push it above its former peak after a year of sharp swings tied to AI memory demand and customer lock-ins. The forecast lands as the stock trades around $930, far above its early-2025 level near $65 but still below the June high that came before a 39% pullback.
The reason investors keep circling Micron now is simple: the company has been posting numbers that look more like a boom than a normal cycle. In its most recently reported quarter, revenue jumped 346% year over year and net income rose 1,400%, while over the last six months the company more than tripled revenue and more than quintupled profits. That kind of growth has made the stock a leading gauge for how much AI memory demand is spilling into real earnings, not just hopeful trading.
One of the clearest signs of that demand arrived on Tesla's earnings call, when Elon Musk publicly thanked Micron for making room for Tesla in the years to come and for giving the company a significant allocation on reasonable terms. He linked that deal to the “pretty insane pricing of memory these days,” a reminder that the market is still tight enough for customers to fight over supply rather than simply shop for the lowest quote.
Micron's pricing power does not rest only on one customer. The company has been inking long-term purchasing deals with major customers that lock in price floors, which helps explain how it can plan production and capacity farther ahead than a spot market would allow. When supply is limited and demand is rising, those contracts can protect margins even if the broader chip cycle cools. Nvidia has used similar partnership-style ties to lock companies into its AI ecosystem, and the same logic is now showing up in memory.
That does not make the stock a straight line higher. Micron's rally has already gone from about $65 in early 2025 to a June top of $1,214 before dropping 39%, and the shares now sit well below that peak even after the latest surge. The market is buying the story that AI memory chips will stay scarce and expensive, but it is also marking down how much of that promise is already in the price.
The unresolved question is not whether Micron has momentum; it is whether the company can keep the mix of demand, supply discipline and pricing power intact long enough to turn that momentum into $1,300 a share. The Motley Fool Stock Advisor analyst team has already said Micron is not among its 10 best stocks to buy now, but the next test will come from the same place the gains started: revenue, profit and how much memory the company can keep placing with customers on its own terms.
