Micron's Stock Poised for Potential Spike Amid Memory Pricing Boom

Nvidia and SK Hynix have indicated that higher memory pricing is here to stay, which could be good news for Micron Technology investors ahead of its upcoming earnings report.

Micron's revenue and earnings have been driven by strong demand and a tight memory supply, leading to a big jump in the company's stock price over the past year. The sustainability of this rally will be put to the test when Micron releases its results on September 30.

Nvidia's CFO Colette Kress said that extreme pricing conditions in memory are here to stay and will even increase next year. SK Hynix also expects the memory shortage to worsen next year, with Korean investment firm KB Securities estimating that the company has just 10 days of memory inventory on hand.

The aggressive jump in hyperscalers' capital spending on AI infrastructure suggests that memory demand will remain robust, which could send prices even higher. Micron's revenue is expected to increase by 88% to $244.5 billion in fiscal 2027, with earnings per share jumping by 112% to $156.07.