Micron’s AI Demand Could Rewire the Memory Cycle

Micron’s results show price-driven growth in DRAM and NAND driven by AI infrastructure demand, with DRAM up mid-60% and NAND up high-70% year over year, pushing gross margins toward 80% as supply remains tight; strategic 5-year contracts improve revenue visibility and AI-driven memory needs in servers, workstations, and high-memory devices expand the market beyond a traditional cycle. Despite solid fundamentals, MU trades around 7.9x FY2026 EPS and 4.8x FY2027 EPS, which the author views as a mispricing: an AI infrastructure stock rather than a pure memory cyclicality play.