Micron Technology's record margins boost stock surge amid chip supercycle

Micron Technology is projected to post an unprecedented 86% gross margin in 2026 as the chip super‑cycle peaks. The high‑margin performance has driven the company’s share price up about 300% since the start of the year, leaving the stock trading at a price‑to‑earnings multiple of roughly nine for 2027, according to Lynx analysts. Micron’s advantage stems from the profitability of High‑Bandwidth Memory (HBM) modules, which are in strong demand for artificial‑intelligence workloads and expected to remain scarce through 2027. The rally has also lifted other semiconductor firms, with Samsung and SK Hynix seeing similar share‑price gains and German chip maker Infineon approaching the €100 mark in the DAX. Analysts view Micron as a strategic infrastructure winner of the AI boom, noting that its valuation appears unusually low given the margin outlook.