Micron surges 698% in a year, stock split question looms

Micron Technology Inc. shares have gained 698% over the past year, pushing the stock price to nearly $1,000 and reigniting speculation about a potential forward stock split — the company's first since 2000.

"Companies typically split shares when the price becomes a psychological barrier for retail investors, and $1,000 is a well-known threshold," Tom Brennan, an analyst covering shareholder actions, said. "Micron's history of splits in 1994, 1995, and 2000 suggests management is not opposed to the move."

The memory chipmaker's earnings per share jumped 1,200% year over year in fiscal Q3 2026 to $25.11, with Q4 guidance of $31.00 per share implying another tenfold increase. Management said on the earnings call that memory supply shortages will persist beyond 2027, supporting the favorable pricing environment driving Micron's earnings growth.

A stock split would reduce the per-share price while keeping market capitalization unchanged, potentially broadening the shareholder base among retail investors. Nvidia Corp. executed a 10-for-1 split in June 2024 when its stock traded at $1,200, and shares have risen 60% on a split-adjusted basis since then.

Valuation supports the case for a split

Micron trades at 23 times trailing earnings, a discount to the tech-heavy Nasdaq-100 index's multiple of 35. Its forward P/E of 7 compares with the index's 27, reflecting the steep earnings growth trajectory that analysts expect to continue as AI-driven demand for dynamic random-access memory and NAND flash chips outpaces supply.

The company's last forward split occurred in 2000, when the stock had rallied on the back of the dot-com era's demand for memory chips. Two earlier splits took place in 1994 and 1995, each following sustained price appreciation.

What a split means for investors

Many brokerages already offer fractional share trading, reducing the practical barrier of a $1,000 stock price. The primary benefit of a split would be psychological: a lower nominal price could attract smaller retail accounts and potentially increase trading liquidity.

The strong earnings trajectory means Micron remains attractively valued regardless of a split decision. The memory supply shortage that management expects to last beyond 2027 provides a multiyear tailwind for revenue and profit growth, with SK Hynix planning to double wafer capacity over five years and Samsung committing $648 billion to South Korean chip production over the next decade.

This article is for informational purposes only and does not constitute investment advice.