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News  ›  The Motley Fool

Could This AI Leader Be the Market's Best Performer Next Year?

The Motley Fool Logo The Motley Fool By Chris Neiger
Could This AI Leader Be the Market's Best Performer Next Year?

Micron Technology has surged 217% in 2025, significantly outpacing the S&P 500's 16% gains. The company reported strong Q1 fiscal 2026 results with 56% sales growth and 167% earnings growth, driven by massive AI data center spending. With DRAM memory prices expected to double in 2026 and Micron holding a 26% market share, the stock appears poised for continued growth. Notably, Micron trades at a P/E of 21, making it cheaper than most tech peers despite its exceptional performance.

Insights
MU   positive

Strong quarterly results with 56% YoY sales growth and 167% earnings growth. Significant margin expansion to 56% with further increases expected. Positioned to benefit from surging AI data center spending. Attractive valuation at P/E of 21 compared to tech sector average of 44. DRAM prices expected to double in 2026, supporting continued growth.