Micron (MU) Forecasts Near 1,000% EPS Surge on AI Memory Demand

Micron Technology (MU) is projected to report a near 1,000% surge in adjusted earnings per share (EPS) for its fiscal quarter ending May 2026, driven by robust demand for AI-related high-bandwidth memory (HBM). Market consensus, according to FactSet, anticipates adjusted EPS of $20.57, with some analysts expecting potential upside. This significant profit increase stems primarily from soaring memory chip prices amid tight supply, rather than increased shipment volumes. Analysts like Morningstar's William Kerwin note HBM's critical role in AI applications and its higher profitability compared to traditional DRAM. Stifel analyst Brian Chin believes Micron is in a "sweet spot" of an unprecedented market expansion. While the current quarter's growth rate is projected to be the peak, FactSet forecasts a 725% year-over-year EPS increase for the fiscal quarter ending August 2026. Projections for the subsequent fiscal quarter ending May 2027 show adjusted EPS reaching $31.70, a 54% year-over-year increase, indicating a normalization of growth rates as the base comparison rises. Supply-demand imbalance for memory is expected to persist for 12 to 18 months.