We Called Micron at $60. Its Latest Earnings Suggest the Growth Story Isn’t Over.

By AltIndex Research · 9 min read · September 30, 5:33 pm

Our data turned bullish on Micron when the stock was trading around $60. Since then, MU has climbed dramatically as AI infrastructure spending created enormous demand for memory. Micron's latest earnings add another layer of support to that original signal, with record revenue, stronger-than-expected earnings and guidance, and alternative data that continues to show an expanding business.

Micron now trades above $1,000 and has grown into a roughly $1.2 trillion company. Its transformation has been driven largely by high-bandwidth memory and other products used in AI data centers, where demand has continued to outpace available supply.

The question for investors today is whether Micron can continue growing quickly enough to support a valuation that already reflects much of that success.

Our bullish signal came early in Micron's recovery

Our data moved into bullish territory when Micron shares were around $60, well before the current scale of AI-memory demand was reflected in the company's financial results.

The AltIndex AI Score combines financial and market data with signals such as hiring, employee sentiment, web activity, retail sentiment and analyst trends. In Micron's case, that broader view identified improving conditions before the current earnings power became visible in reported results.

As AI infrastructure spending accelerated, high-bandwidth memory became a critical component in data-center systems. Micron's exposure to that market helped drive a rapid increase in revenue, margins and earnings, while its share price rose many times over from the level where our bullish signal first appeared.

The latest earnings show another step up in growth

Micron reported fiscal fourth-quarter revenue of $54.23 billion, up from $41.46 billion in the previous quarter and $11.32 billion a year earlier. Non-GAAP earnings reached $33.42 per diluted share, compared with $25.11 in the prior quarter. Micron's results also showed non-GAAP gross margin reaching 87%.

Management expects the expansion to continue into fiscal 2027. First-quarter guidance calls for $61.5 billion of revenue, plus or minus $1.5 billion, along with non-GAAP diluted EPS of $38.15, plus or minus $1.00.

Long-term customer commitments have also increased. Reuters reported that Micron's strategic customer agreements had risen to approximately $32 billion, from $22 billion in June, while customers have already secured much of the company's future memory output. Management expects supply-demand conditions to remain tight through fiscal 2027 and 2028.

Those commitments provide additional visibility into future demand at a time when Micron is making large investments in technology and manufacturing capacity.

Hiring remains one of the strongest alternative-data signals

Our job-posting data shows a sharp increase in Micron's hiring activity during 2026.

The latest weekly reading is approximately 3,227 job postings, up from roughly 1,570 in mid-August. The monthly average for September was approximately 3,125, compared with about 2,125 in August and 2,010 in July.

The hiring trend supports a picture of continued investment in capacity and operations. Micron has already produced a substantial increase in revenue and profitability, while job postings have continued rising into the latest quarter.

This expansion also aligns with management's plans to increase investment in technology, products and manufacturing as it prepares for continued AI-related demand.

Employee confidence has remained steady during the expansion

Our latest employee business outlook reading is 74%. The metric has remained in a narrow range around 74% to 75% through most of 2026.

Stable employee outlook adds useful context while Micron scales production and adds capacity. Rapid expansion can place pressure on an organization, and the employee data currently shows little change in overall business confidence during that process.

Is there still upside after the rally?

Micron now carries an AI Score of 74 out of 100, while our current six-month model estimates a price of approximately $1,218.11. That forecast implies additional upside from the current price near $1,065.

The current score is supported by strong financial performance and operating signals that remain healthy. Revenue and earnings are still rising, job postings have accelerated, employee outlook remains stable and management expects continued tightness in memory supply.

The main risks are tied to Micron's cyclicality and the scale of expectations now built into the stock. Micron is investing heavily in new capacity, and future additions to memory supply could eventually weigh on pricing and margins. A slowdown in AI infrastructure spending would also reduce the demand assumptions supporting today's growth rates.

For now, our data continues to show a company operating in growth mode. The opportunity is very different from the one that existed when our original bullish signal appeared near $60, yet the current AI Score of 74 suggests that the broader set of signals we track remains positive.

AltIndex provides signals and information for research purposes and does not provide investment advice. AI Scores and price forecasts can change as new data becomes available.