2 hours ago
4
Keithen Drury, The Motley Fool
Thu, May 28, 2026 astatine 10:31 AM CDT 4 min read
Micron (NASDAQ: MU) has been 1 of the hottest stocks to ain implicit the past year. If you bought it 1 twelvemonth ago, you paid astir $90 per share. Now it's astir $750 per share. However, Micron whitethorn not beryllium done producing jaw-dropping results.
Micron is chasing a large maturation trend, and it could propel the banal to four-digit levels and beyond. In fact, I wouldn't beryllium amazed if the banal much than doubles from present and reaches $2,000. So what volition that take?
Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected a little-known company, called an "Indispensable Monopoly," providing the captious exertion Nvidia and Intel some need.
Memory spot request has reached an all-time precocious
Micron is 1 of the superior representation spot producers. While determination are respective others with important marketplace share, Micron is 1 of the much fashionable concern picks. All computing devices necessitate representation capableness for accelerated entree to stored information. Artificial quality (AI) requires a immense magnitude of representation capacity, and that rising request is consuming astir each disposable representation capacity.
During Micron's latest net call, absorption told investors that it could conscionable lone fractional to two-thirds of medium-term demand. That's a immense shortage, and restricted manufacturing crossed the representation manufacture has led to soaring representation spot prices.
With accrued accumulation capableness expected to travel online successful 2027, prices volition enactment elevated for a while. However, the AI build-out isn't slowing down anytime soon. Right now, a batch of costs are being sunk into construction, with onshore and gathering expenses being high. Soon, that volition flip to much compute-focused spending, further expanding request for high-speed representation chips.
Micron expects the full addressable marketplace for its high-bandwidth representation chips (the benignant utilized successful AI computing) to grow from $35 cardinal successful 2025 to $100 cardinal successful 2028. That's large growth, and it volition let Micron to proceed cashing successful connected elevated representation spot prices. Wall Street expects Micron's gross to turn 193% for the remainder of fiscal twelvemonth 2026 (ending August 2026). In fiscal 2027, it expects 57% growth. Those figures let america to cipher a 2027 terms target.
Micron is besides reasonably cheap, trading astatine 13 times guardant net estimates.
MU PE Ratio (Forward) information by YCharts
Micron appears inexpensive due to the fact that it operates successful a cyclical manufacture that could yet crook against Micron and its peers, truthful the marketplace hesitates to afloat worth the stock. However, if the representation spot question becomes a multi-year trend, Micron whitethorn gain a premium valuation.
English (CA) · 
English (US) · 
Spanish (MX) ·