Micron’s AI Memory Pivot Tests Valuation As US Fab Spending Surges

Simply Wall St

Mon, February 23, 2026 at 10:07 AM GMT+9 3 min read

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•                                       StockStory Top Pick 
  

  MU

  +2.59%

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Micron Technology (NasdaqGS:MU) is reshaping its business around AI infrastructure, exiting most consumer memory products and prioritizing high-bandwidth memory for data centers.

The company reports that its high-bandwidth memory supply is already committed through 2026 under multi-year agreements with major AI and cloud customers.

Micron is planning up to US$200b in new U.S. fabrication capacity, supported in part by government incentives, to meet long term AI-related demand.

For investors tracking AI hardware, Micron now sits squarely in the infrastructure core rather than the consumer PC cycle. The stock trades at US$428.17, with very large 1 year and 3 year returns and a roughly 7x move over 3 years, reflecting how the market is treating this shift. With year to date gains of 35.7% and a 30 day return of 7.1%, Micron is being priced as a central player in high performance memory for AI workloads.

Looking ahead, the key questions are how reliably Micron can convert its sold out high-bandwidth memory pipeline and planned U.S. fab investments into cash flows over time. Multi-year supply contracts and government backed projects offer some visibility, but investors still need to watch execution risks, capital intensity and how customer demand for AI accelerators evolves through 2026 and beyond.

Stay updated on the most important news stories for Micron Technology by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Micron Technology.

NasdaqGS:MU Earnings & Revenue Growth as at Feb 2026

We’ve flagged 1 risk for Micron Technology. See which could impact your investment.

Quick Assessment

**⚖️ Price vs Analyst Target**: At US$428.17, Micron trades about 9.5% above the US$390.90 analyst target, within a range where opinions are clearly divided.

**❌ Simply Wall St Valuation**: Simply Wall St flags the shares as trading roughly 126% above its estimated fair value, so expectations are already high.

**✅ Recent Momentum**: A 30 day return of 7.1% shows buyers have been rewarding the AI infrastructure story recently.

There is only one way to know the right time to buy, sell or hold Micron Technology. Head to Simply Wall St’s company report for the latest analysis of Micron Technology’s Fair Value.

Key Considerations

📊 The shift away from consumer memory toward high bandwidth AI infrastructure ties Micron more closely to data center spending cycles rather than PCs.

📊 Watch utilization of the planned US$200b US fabs, HBM pricing, and whether earnings and cash flows keep pace with the current P/E of about 40x and strong recent revenue and profit growth.

⚠️ With shares flagged as materially overvalued and insider selling identified as a risk, execution on multi year contracts and large capex plans becomes especially important.

 






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For the full picture including more risks and rewards, check out the complete Micron Technology analysis. Alternatively, you can visit the community page for Micron Technology to see how other investors believe this latest news will impact the company’s narrative.

_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include MU.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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