Micron management expects conditions in the memory chip market to remain tighter in 2027 and 2028 than they were in 2026. The company’s stock has more than tripled so far in 2026, making it the fourth-best-performing stock in the S&P 500 this year. Micron produces memory chips, which have become some of the most in-demand tech hardware due to scarcity. The manufacturers of these chips were not prepared for the massive growth in demand generated by the artificial intelligence build-out, which has consumed all available supplies this year. Memory chips function as commodity products, meaning prices soar when demand significantly outpaces supply. Micron’s input costs barely shifted during this period, so the rising prices the company can now charge represent pure profit. This dynamic caused the stock to skyrocket as investors watched the company’s top and bottom lines multiply. The shortage is not expected to end soon. On its latest earnings call, Micron’s management team advised investors that market conditions will be even tighter in the coming years. Meanwhile, Micron has been building new foundry lines. With more production capacity coming online in 2027, the company will be able to manufacture more chips to sell at higher price points, leading to significant additional profit growth. Wall Street’s outlook reflects this trajectory. Micron reported $75.52 in earnings per share during fiscal 2026, which ended in August. Management estimates the company will generate $176.55 in earnings per share during fiscal 2027. Over the past couple of years, Micron’s stock usually traded near 20 times earnings. Currently, it trades at 12 times earnings because the market does not believe the boom will last. Micron’s management team has stated that the conditions leading to high memory demand and insufficient supply are not going away. If Micron meets analysts' expectations for fiscal 2027, the stock would have to triple to trade at 15 times earnings next fall. If it trades at 20 times earnings at that point, the stock would quadruple from its current level. The market's bearishness about the long-term outlook for AI spending leaves potential value on the table for investors considering Micron.