Micron (NASDAQ: MU), one of the world’s largest memory chipmakers, has been a major beneficiary of the AI boom. After suffering a severe slowdown in fiscal 2023 (which ended in Aug. 2023), its revenue surged 62% in fiscal 2024 and 49% in fiscal 2025.
Micron’s sales of high-bandwidth memory (HBM) DRAM chips and NAND chips for enterprise solid-state drives (SSDs) in AI clusters in data centers fueled that growth, and that momentum should continue for the foreseeable future. Analysts expect its revenue to soar 248% in fiscal 2026, 91% in fiscal 2027, and finally cool down to 14% growth in fiscal 2028.
Missed AI’s “Act 1”? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
That’s why Micron’s stock has rallied more than 1,000% over the past two years. But at $1,040 per share, it still looks surprising cheap at just six times next year’s earnings. Let’s see if Micron is still an undervalued growth play — and where it might head over the next 12 months.
Why is Micron’s business booming?
Micron isn’t the world’s largest producer of DRAM and NAND chips, but it generally produces more power-efficient chips than its larger competitors, Samsung and SK Hynix (NASDAQ: SKHY). As a U.S. chipmaker (which splits its manufacturing between its Asian and domestic fabs), Micron’s business is partly subsidized by the U.S. government.
Over the past three years, Micron’s HBM DRAM chips — which stack layers of memory chips vertically to achieve higher data transfer speeds for AI applications — skyrocketed. These chips are directly paired with Nvidia‘s (NASDAQ: NVDA) data center GPUs to train AI clusters. To store all of that information, those data centers bought more enterprise SSDs from Micron.
HBM chips require triple the wafer capacity of a standard DRAM chip, so their increased output throttled the production of Micron’s lower-end chips for PCs and servers. That bottleneck drove up prices for all DRAM and NAND memory chips, and Micron’s sales skyrocketed.
Where will Micron’s stock be in a year?
Micron’s stock trades at such a low multiple because it’s still valued as a cyclical chipmaker. But if the AI boom lasts much longer than Micron’s previous boom-and-bust cycles — which mainly revolved around the PC and smartphone markets — it could command a higher valuation.
Assuming Micron matches Wall Street’s estimates through fiscal 2028 and still trades at six times forward earnings in a year, its stock would rise about 8% to $1,120 over the next 12 months. But if it trades at a more generous 10 times forward earnings, its stock could rise by another 80% to about $1,870. So even though Micron probably won’t replicate its massive gains from the past two years, it still has plenty of upside potential if the AI boom continues.
Should you buy stock in Micron Technology right now?
Before you buy stock in Micron Technology, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $387,158!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,365,749!*
Now, it’s worth noting Stock Advisor’s total average return is 932% — a market-crushing outperformance compared to 211% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 21, 2026.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology and Nvidia. The Motley Fool has a disclosure policy.
Where Will Micron Stock Be in 1 Year? was originally published by The Motley Fool
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: finance.yahoo.com
