Micron Technology's stock has surged over 700% in the past year, driven by the increased demand from artificial intelligence and ongoing memory chip shortages. Despite a low forward price-to-earnings ratio of 9.74, analysts are reevaluating Micron's valuation due to the potential emergence of a memory chip supercycle. Xbox CEO Asha Sharma highlighted a "hardware component crisis" affecting memory costs, which have reportedly increased fivefold over two years, complicating console production. This points to a broader trend of supply shortages expected to persist into 2027, influencing investor sentiment regarding Micron's long-term earnings potential.

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Micron Stock Rebounds as Memory-Chip Shortage Drives Gains

By Adam Clark

Updated June 15, 2026, 10:48 am EDT / Original June 15, 2026, 7:32 am EDT

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Micron Technology shares have risen more than 700% over the past 12 months. (Photograph by Johannes Plenio)

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Micron Technology shares rose, driven by artificial intelligence momentum and chip shortages.
Micron’s valuation is being reconsidered due to a potential memory chip supercycle, despite its low 9.74 times forward earnings.
Xbox CEO Asha Sharma warned last week of a “hardware component crisis,” noting memory costs rose fivefold over two years.

Micron Technology

MU\ \ +9.10% stock was rising sharply early Monday amid a resurgence of the artificial-intelligence momentum trade, alongside reminders of the shortage in memory chips.

Micron shares were up 8.1% at $1,061.30 in early trading with markets cheered by the prospect of a U.S.-Iran peace deal.

Shares have been volatile as investors debate Micron’s valuation. The chip maker trades at a notably low forward price-to-earnings ratio, a reflection of the memory industry’s frequent boom-and-bust cycles. Micron was trading at 9.74 times forward earnings as of Friday’s close versus 25.5 times for the tech-heavy Nasdaq Composite according to FactSet.

However, the prospect of a so-called supercycle in memory chips, caused by the need for the components in AI hardware, is leading investors to reconsider Micron’s valuation. Barron’s has argued Micron is undervalued considering the potential for a long-term earnings boost.

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The latest sign of the memory-supply crunch came last week when the new head of the Xbox videogame console division at Microsoft warned in a publicly released memo that the unit was facing a “hardware component crisis.” Xbox CEO Asha Sharma said memory costs have risen roughly fivefold over the past two years and the company is unable to make as many consoles as consumers want.

“That a platform holder is publicly weighing a new hardware model and flagging constrained console output shows the pass through has moved from PCs and phones into fixed BOM [bill of materials] devices that can’t easily reprice, reinforcing our structural shortage through 2027+ thesis,” wrote Wedbush analyst Matt Bryson in a research note.

Write to Adam Clark at adam.clark@barrons.comExternal link

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Why Goldman Is Cautious on Micron Stock Ahead of Earnings

By Adam Clark

and Anita Hamilton

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Micron Technology shares have risen more than 700% in the past 12 months. (Photo by Justin Sullivan/Getty Images)

Micron Technology shares closed down on Friday, ending a volatile week for the memory-chip company. Analysts at Goldman Sachs are wary of the stock ahead of its earnings report later this month.

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Stocks were surging Monday as investors piled into artificial-intelligence names after the U.S. and Iran reached a peace deal. Oil prices fell to their lowest level since early March.

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