August 26 will become a focal point for global capital markets. NVIDIA (NVDA), the world’s most valuable chip company, will release its fiscal 2027 second-quarter earnings report on that day. As a core barometer of artificial intelligence technology development, NVIDIA’s performance not only concerns its own stock price trajectory but also deeply influences market confidence in the entire AI infrastructure ecosystem. Against this expectation, the stock price movement of its key supplier Micron Technology (MU) has drawn significant external attention.
The advancement progress of NVIDIA’s next-generation AI chip Vera Rubin is regarded as an important engine for Micron Technology’s future earnings growth. Micron has begun mass-producing high-bandwidth memory (HBM) chips for NVIDIA’s upcoming Vera Rubin processor, and NVIDIA has confirmed that the processor has entered full-scale production. Compared with the previous-generation Blackwell B200, the maximum HBM capacity of the Vera Rubin R100 GPU will leap from 192 GB to 288 GB, and the HBM version used is reportedly 80% more expensive. This means that Micron is expected to achieve significant improvements in both shipment volume and product pricing. Considering that NVIDIA’s total order backlog for Vera Rubin and Blackwell processors in fiscal 2026 and 2027 amounts to $1 trillion, the company has a strong foundation for delivering growth data and guidance that exceed expectations, which could serve as a direct catalyst to lift Micron’s stock price.
Artificial intelligence is fundamentally changing the landscape of the memory chip industry. Micron Technology Chief Executive Officer Sanjay Mehrotra pointed out that the demand from AI systems for higher-performance, lower-power memory has completely transformed the value equation of memory. In response to this trend, Micron is aggressively expanding production capacity, with its large-scale wafer fab at the Boise headquarters expected to begin production in mid-2027, and the entire campus will eventually include two mega-fabs. Mehrotra emphasized that unlike traditional industry cycles driven alternately by capacity expansion and oversupply, AI has given rise to a more enduring source of demand. In addition to the urgent need for high-performance memory in data centers, autonomous vehicles, robotics, and AI consumer devices will all place higher demands on memory capacity in the coming years. Currently, Micron cannot produce enough chips to meet market demand, with total demand from data center customers approximately 50% higher than supply commitments. To enhance business predictability, Micron has signed long-term strategic agreements with multiple customers, locking in procurement volumes, marking the industry’s transition from a past model driven by severe spot price volatility to a new phase of stable demand assurance.
From a valuation perspective, Micron Technology’s current forward price-to-earnings ratio of approximately 6x is notably attractive. The market generally expects its fiscal 2027 earnings to achieve growth of over 110%, reaching $154.89 per share. Even if the price-to-earnings ratio only recovers to 15x at that time—still significantly below the average level of the Nasdaq 100 Index—the corresponding stock price would still offer substantial upside from current levels. Catalyzed by NVIDIA’s potential strong earnings report, Micron Technology’s stock price performance over the next year is worth anticipating.
