Micron Technology (NASDAQ:MU) has delivered eye-popping gains of more than 8x over the past year, driven by an incredible increase in the company's revenue and earnings amid a favorable memory pricing environment. However, investors have been booking profits in Micron stock lately. It has slipped 16% from the 52-week high it reached a couple of months ago, and that's quite surprising, since Micron's stunning growth isn't showing any signs of slowing.
In fact, a closer look at the memory market's demand-supply dynamics will make it clear that the catalyst driving Micron's phenomenal growth over the past year is here to stay over the next year as well. This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » But will that be enough for this semiconductor stock to regain its mojo and jump another 200% by the end of 2027? Artificial intelligence (AI) data centers require faster compute memory to move huge data sets quickly to graphics processing units (GPUs), server processors, and custom AI chips.
This faster compute is enabled by stacking multiple dynamic random-access memory (DRAM) chips to create high-bandwidth memory (HBM). As a result, manufacturing HBM requires 3x the wafer capacity of a conventional DRAM chip. It is worth noting that global HBM revenue nearly doubled in 2025, according to Yole Group.
Not surprisingly, memory demand has substantially exceeded supply, as memory manufacturers have prioritized HBM production due to higher margins. JPMorgan notes that DRAM prices will jump by a whopping 400% from the beginning of 2024 to the end of 2026. As Micron derives over three-fourths of its revenue from DRAM sales, it is easy to see why the company's revenue and earnings growth have shot up over the past year.
The good news for Micron investors is that the memory market's growth is poised to continue in 2027. Market research firm TrendForce estimates that the global DRAM market's revenue could increase to $903.3 billion in 2027 from $618.7 billion this year. Micron has a 25% share of the DRAM market, according to Counterpoint Research.
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