Micron stock price continued its strong rally on Wednesday after the company published strong financial results. MU jumped to a high of $170, continuing a trend that started in April when it bottomed at $61. So, does it have more upside ahead?

Micron’s business is thriving

Micron, a large company in the DRAM and NAND business, is thriving as demand for its solutions jump amid the ongoing artificial intelligence investments. This growth has made it one of the best-performing companies in the S&P 500 and Nasdaq 100 indices.

Micron’s growth accelerated in the fourth fiscal quarter. It made over $11 billion, a 46% increase from what it made in the same period this year. This performance means that the company, which was established in 1978, has become a growth stock. 

The annual revenue rose by 49% to $37.4 billion. Most of this growth was driven by the DRAM segment, which made $9 billion, a 27% annual increase. This growth brought its annual revenue to $28 billion.

NAND, on the other hand, brought in $2.3 billion in the fourth quarter and $8.5 billion annually. 

These numbers align with the performance of other companies making huge investments in the data center. For example, Nvidia announced a $100 billion investment deal with OpenAI this week.

Additionally, Softbank, OpenAI, and Oracle have expanded their Stargate project to more data centers in the US. More companies like Nebius, IREN, and Coreweave have also boosted their performance in the data center industry. 

Analysts believe that data center spending has more room to grow by 2030. Micron will benefit from this growth as its solutions are widely used in the data centers.

The cloud and data centers are also high-margin segments for the company. Its data center business has an operating margin of 25%, while its cloud memory has a margin of 48%. The company’s CEO said:

“In fiscal 2025, we achieved all-time highs across our data center business and are entering fiscal 2026 with strong momentum and our most competitive portfolio to date. As the only U.S.-based memory manufacturer, Micron is uniquely positioned to capitalize on the AI opportunity ahead.”

MU stock is a bargain

What is notable about the MU stock price is that it is still a bargain despite the recent surge. 

Data shows the company trades at a forward price-to-earnings ratio of just 22, which is slightly lower than the S&P 500’s 23. The multiple is also lower than the sector median of 33.

When considering the non-GAAP multiple, the company has a ratio of just 20, also lower than the sector median of 25. Its PEG ratio, which is modified to incorporate its growth, stands at 0.23.

The cheap valuation multiples, its strong growth, and the ongoing momentum means that the stock has more upside in the near term.

Micron stock price technical analysis 

MU stock chart | Source: TradingView

The daily timeframe chart shows that the MU stock price has been in a strong uptrend in the past few months, moving from a low of $61 to $170. It has recently moved above the important resistance level at $156, the highest level in January last year.

The stock remains above the 50-day and 100-day Exponential Moving Averages (EMA), while the Average Directional Index (ADX) has moved to 33, a sign that the bullish momentum is gaining steam. Therefore, the Micron stock price will likely continue rising as bulls target the next key resistance level at $200.

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