Memory and Storage Stocks Are Surging; Here Are 2 Leaders to Watch

After surging more than 70% year-to-date (YTD), shares of Micron Technology Inc. (NASDAQ: MU) are still viewed as undervalued, trading at just 8.4X forward earnings. Shares were in the doldrums in early 2025 as Micron was a leading producer of dynamic random access memory (DRAM), a highly commoditized product. DRAM is working memory that stores data currently in use. High-bandwidth memory (HBM) stacks memory chips vertically rather than horizontally, as in DRAM. This creates exponentially more capacity, enabling it to move 1.2TB of data per second with its HBM3E.

Micron began mass producing their 24GB 8-High HBM3E in early 2024. They were essentially late bloomers in the AI boom, but HBM3E was hit, and supplies sold out quickly. The markets didn’t fully appreciate the magnitude of the impact until mid-2025, as shares rose above $100. HBM3E proved to be more energy efficient, consuming 30% less power than its peers. This led Nvidia to adopt it and package it with its next-generation Blackwell GPUs, as Micron became the primary supplier. Demand skyrocketed, and all HBM capacity for 2026 was sold out. Their next-generation HBM4 ramps up capacity to over 2.8TB/s, with more than a 20% improvement in power efficiency over HBM3E. Mass production began in April 2026, as prices have risen by over 50%. Here’s the Sigmanomics forecast for MU stock.