We’ll dive into the big quarter of Micron’s success and how my system is helping find the winners of the next phase of the AI boom
Listen to the audio version of this article (generated by artificial intelligence).
In 1909, Theodore Roosevelt left the White House and headed to East Africa.
He was not going there as a tourist.
Roosevelt, his son Kermit, and a team of naturalists were traveling on behalf of the Smithsonian Institution. Much of the journey boiled down to one difficult task:
Tracking elephants.
In the thick African brush, you don’t just wait for the elephant to appear. By then, it may already be too late.
You had to look for signs: new tracks in the mud. Broken branches. Troubled grass. A path through the brush tells you that something enormous has passed before you saw it.
This is how I think about stocks.
I’m not interested in waiting until the whole world can see the elephant. By then, Wall Street had usually figured out the story. Headlines are everywhere. The crowd has appeared. A lot of easy money has already been made.
This brings me to Micron Technology Corporation (in).
Microns are no longer hiding in the brush. The stock is up 325% year to date and 853% over the past year. It became a company with a market cap of $1 trillion last month. And after this week’s impressive earnings report, it quickly became one of Wall Street’s favorite stocks AI shares.
This did not happen by chance.
It happened because Micron helps solve one of the biggest AI problems today: the memory bottleneck.
So, on the day Market 360we’ll dive into the big quarter of Micron’s success, discuss why it’s important, and then talk about how my system is actually helping me find winners from the next phase of the AI boom before it catches the public’s eye.
Micron crushed Wall Street expectations
Over the past few years, Nvidia company (NVDA) It was the grand finale of earnings season. But now, I think Micron has taken over that role.
This is why.
NVIDIA tells us how strong demand is for graphics processing units, the chips that power today’s AI systems. But Micron tells us whether those systems can get the memory they need to continue operating at full speed.
Micron is one of the largest manufacturers of memory and storage chips in the world. In plain English, their chips help computers and data centers store information, access it quickly, and move it where you need it.
This may not sound as exciting as a high-end GPU. But without memory, those GPUs can’t do their job.
Think of it this way: the GPU is the engine in a race car. Memory is the fuel line. You can build the most powerful engine in the world. But if the fuel line cannot deliver enough fuel, the engine will not be able to run at full speed.
This is the bottleneck that AI now faces. AI models are getting bigger. More companies are using AI in the real world. Data centers are being pushed more aggressively. All of this creates a need for faster and more advanced memory.
That’s why Micron’s results are so important.
The stock soared out of the gates Thursday morning after publishing blowout results for its third quarter of fiscal 2026. Revenue jumped 73.8% year over year to $41.46 billion, while earnings rose a whopping 1,223.1% year over year to $28.86 billion, or $25.11 per share.
Wall Street was already expecting a strong quarter. The consensus estimate called for earnings of $20.71 per share on revenue of $35.82 billion. So, Micron posted an earnings surprise of 21.2% and a revenue surprise of 15.7%.
Micron also issued a stronger-than-expected forecast. For the fourth quarter of fiscal 2026, the company expects total revenue of about $50 billion and earnings of about $31 per share. This would represent revenue growth of 342% year-over-year and earnings growth of 923.1% year-over-year.
This tells me that this memory boom still has legs.
The administration explained the reason. The company noted, “Micron’s record third-quarter financial results and stronger expectations for the fourth quarter reflect the strategic value of memory in the age of artificial intelligence.”
This last phrase is the key: The strategic value of memory in the age of artificial intelligence.
For many years, memory chips have been treated like a cyclical commodity trade. important? Yes. arousing? Not real.
But artificial intelligence has changed that. Today, memory has become one of the most important pressure points in the entire construction of artificial intelligence. Micron stands right in the middle of it.
Is Micron still cheap?
Now, I know what some people are thinking: Can a stock go that high and still be attractive?
This is a fair question.
For decades, memory has been a brutally cyclical business. That’s why, just before earnings were announced, Micron stock was trading at just nine times forward earnings. This is much less Western Digital Corporation (WDC) and Seagate Technology Holdings plc (STX), both trading at more than 36 times forward earnings.
The Bears say the discount makes sense. They argue that memory is still memory, and that this cycle will eventually turn.
I understand this argument, but there is a real case that this time is different.
Instead of short periods of demand associated with computers and smartphones, Micron is now associated with the continuous construction of AI data centers. These data centers require huge amounts of high-performance memory.
Micron’s long-term supply agreements support this idea. Market monitoring It reported that Micron has signed 16 strategic customer agreements, 14 of which include pricing representing approximately $100 billion in cumulative revenue, at a minimum.
This kind of vision is something memory companies haven’t always had. So, there’s a strong argument that this round may not be over yet.
A trap that investors should avoid
However, I’ve been around long enough to know what happens when the trade gets too crowded.
The more popular a stock becomes, the more crowded it becomes. In today’s market, congestion can happen faster than ever before.
This is because millions of investors now rely on the same AI tools, the same AI-generated research, the same model portfolios, and the same automated trading systems. So, when a stock becomes the clear AI winner, the crowd can pile in at once.
It can feel good for a while. It could push the stock higher. It can make everyone feel like they are on the right side of the trade.
But it can also create a dangerous setup.
When retail investors and AI-driven systems flock to the same obvious names, institutional investors often get the liquidity they need to sell into that demand. In other words, the public may be buying while the smart money is moving quietly.
This is the trap I want to help readers avoid.
Again, Micron is a great company. I still love it. But the bigger lesson is that by the time the stock becomes clear to everyone, Wall Street’s elephants may already be looking for the next opportunity.
That’s why I don’t want to chase the crowd. I want to look for new paths.
That’s what My Precursor Intelligence (PI) system It was designed to do.
PI is my way of searching for new paths in numbers. It helps me find companies with accelerating fundamentals and improved cash flow before they become the obvious names that every AI tool recommends.
In my country Accelerating profits Service We’ve already seen this approach lead to several strong AI winners, including:
- Celestica Company (CLS): +836%
- Sizzle Company (under): + 625% increase
- Technip FM C plc (Fast Track Initiative): +254% increase
- And more…
These are the kinds of gains that can happen when you find new paths early, before the elephant steps into the clearing.
To further explain how my PI system works, I Recorded a private show. I also discuss why AI-powered congestion could become a significant risk for investors and where I think the smart money will move next.
I also revealed several stocks that my system is currently flagging.
You can click here to watch it now.
sincerely,
Louis Navellier
editor, Market 360
The Editor hereby discloses that as of the date of this email, the Editor owns, directly or indirectly, the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations contained in the article described below, or otherwise mentioned:
Celestica Corporation (CLS), Micron Technology Company (in), NVIDIA Corporation (NVDA), Seagate Technology Holdings plc (STX), Sizzle, Inc. (under(Technip FM C plc)Fast Track Initiative)
