Micron shares rose more than 850% between June 25, 2025 and June 25, 2026, so a $10,000 investment made on the first date would have grown to $95,370, or about $70,970 after a 25% drop from the peak. Despite the rally, the price-to-earnings ratio fell from about 22 times in June 2025 and 27 times at its June 2026 peak to about 12 times, even as revenue grew 256% and per-share earnings 879% in 16 months. The article says the market fears the memory cycle could turn as it did in the 2023 price crash, and worries about competition from Samsung Electronics, SK Hynix and Chinese manufacturers; Micron has signed multiyear supply deals with price floors to reduce risk. It says a $10 trillion valuation seems unlikely soon, and that although a $10,000 stake may not secure lifelong wealth, AI infrastructure growth could support Micron for years.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Micronsemiconductorsvaluationartificial intelligence
Open a keyword to see other news on the same topic.
Related news
- Micron Tripled in 2026. Can It Repeat in 2027?
Micron (MU) stock has more than tripled in 2026, making it the fourth-best performer in the S&P 500 this year. The article argues that the memory chip shortage driven by AI demand is far from over, since Micron's management expects market conditions in 2027 and 2028 to be even tighter than in 2026. New foundry lines coming online in 2027 could let Micron sell more chips at today's higher prices, which the author says will drive significant profit growth. Micron reported fiscal 2026 EPS of $75.52 and management estimates $176.55 for fiscal 2027; with the stock at about 12 times earnings versus a typical level near 20, the author considers it undervalued.
- Prediction: Micron Could Turn a $5,000 Investment Into This by 2030
Micron's stock was up 334% over the past 12 months and 208% year to date through the close on Oct. 16, as AI demand drives interest in memory and storage makers. From fiscal 2025 to fiscal 2026, its operating income rose from $9.77 billion to $99.34 billion, while gross margin climbed from 39.8% to 80.7%. The author projects fiscal 2027 revenue of $318 billion and assumes growth of 30% in fiscal 2028 and 25% in fiscal 2029, reaching about $517 billion in fiscal 2030. At 6.5 to 8 times sales, that implies a valuation of $3.36 trillion to $4.14 trillion versus $994 billion today, which would grow a $5,000 investment to $16,900–$20,800; at a more conservative 3 to 4 times sales, the range is $7,800–$10,400. The author concludes a $5,000 investment could reach at least $15,000 by 2030, while acknowledging that memory is cyclical and prices may cool once supply catches up.
- 2 Revolutionary AI Stocks With 241% and 324% Upside, According to Select Wall Street Analysts
Analysts cited by the article see up to 324% upside in two AI stocks from their October 16 close. D.A. Davidson's Gil Luria raised his 12-month price target on Micron Technology to a Street-high $3,000 per share, implying 241% upside, citing Micron's long runway in high-bandwidth memory for AI data centers. Micron's fiscal fourth-quarter revenue reached $54.23 billion, up 379% year over year, and it has secured at least $100 billion in strategic customer agreements through 2030, though memory boom cycles are rarely sustainable and competition or an AI bubble burst remain risks. H.C. Wainwright's Scott Buck sees SoundHound AI heading to $20 per share, implying 324% upside. However, SoundHound posted a $42.8 million GAAP loss on record sales of nearly $62 million in the June quarter and burned roughly $60 million in operating cash, while its all-stock LivePerson deal and a $300 million at-the-market offering raise share-dilution concerns.
- The Best Trillion-Dollar Stock to Buy Right Now, According to Wall Street
According to the article, 13 U.S.-listed stocks have a market capitalization of at least $1 trillion, and analysts are most bullish on Micron, with a median target price of $1,575 per share, implying 70% upside from the current $925. Micron's results have surged amid a memory chip shortage driven by AI infrastructure demand: revenue in the September quarter rose 379% to $54 billion, and non-GAAP earnings reached $33.42 per diluted share, up from $3.03 a year earlier. The CEO expects tighter supply-demand conditions in fiscal 2027 and 2028. However, new capacity from Micron, Samsung, SK Hynix and others could lead to oversupply by 2029, and memory prices have historically fallen sharply in such periods. Some investors believe AI demand and longer contracts could weaken the boom-and-bust pattern, while others remain cautious.
- Micron Is Down 23% From Its High. History Suggests This Is What Happens Next.
Micron (MU) has risen about 400% over the past year and 1,250% over three years, as a memory chip shortage has pushed prices and sector stocks sharply higher. In its latest quarter, revenue grew 379% to $54.2 billion with an operating margin of 80.7%, yet the stock remains 23% below its June all-time high because investors expect profits to fall once the supply crunch eases. Over the past decade, Micron has fallen more than 23% five times and each time recovered to or near its all-time high, while after the dot-com peak it took about 20 years to return to that level. The article cites factors that differ now, including strategic customer agreements covering a significant share of revenue through 2030, continued AI-driven demand, and a $100 billion megafab complex in upstate New York. The author expects the stock to recover, noting it trades at a forward P/E of less than 6.
- Can Micron Stock Keep Climbing After a 10-Fold Run? Here's What Its Past Booms Say.
Micron's shares have risen about tenfold from their 2024 year-end close of roughly $84 and now sit near $903. The author argues that past Micron booms show the stock tends to fall before profits do, as earnings stayed strong for a time after prices peaked. The shares are currently 26% below their late-June closing high of $1,213.56, while GAAP earnings per share for fiscal 2026 reached $74.33 versus $7.59 the year before. Profit growth is slowing and DRAM prices are still rising but more slowly, and a price-to-earnings ratio of about 12 suggests the market doesn't expect those profits to last. The author suggests investors size positions with the risk of the next downturn in mind.
Related markets
Latest news
- Could Elon Musk merge Tesla and SpaceX?
Jared Carmel of Manhattan Venture Partners discusses a possible merger of Tesla (TSLA) and SpaceX (SPCX) on Yahoo Finance's Sozzi Unleashed. He argues the two already operate as one, and that compute is a major part of their business after XAI was folded into SpaceX along with Colossus. SpaceX now rents compute to leading AI labs, Grok runs on it, and Optimus will need it. He calls the pairing a classic case of two companies that belong together under one conglomerate, and says power is the piece people often overlook. He also notes the market seems to have forgotten that Tesla is not a hyperscaler and grew spooked by Tesla's CapX cut.
- If You'd Invested $1,000 in Energy Transfer (ET) Stock 10 Years Ago, Here's What You'd Have Today
Energy Transfer LP (ET) is a midstream energy company that moves, stores and processes oil and gas, with about 140,000 miles of pipeline and related infrastructure across 44 states. A $1,000 investment would have grown to $1,676 over three years, $2,494 over five years, $1,870 over 10 years and $3,843 over 15 years. The company is growing partly through acquisitions, recently agreeing to buy Vaquero Midstream for about $2.6 billion, and its fee-based contracts can provide reliable cash flow for about the next decade. Its dividend yield was recently 7%; it cut its payout in 2020 to restructure but has raised it for nearly 20 quarters in a row. As a master limited partnership, Energy Transfer requires owners to file a K-1 tax form.
- The case for why 'load-bearing' AI companies should not be bailed out
Ed Zitron, CEO of EZPR, argues on The 8:30 that OpenAI (OPAI.PVT) and Anthropic (ANTH.PVT) are 'load-bearing' for Microsoft, Google, Amazon, CoreWeave and Nebius but should be allowed to fail rather than be rescued, and should not go public. He says record stock ownership among Americans makes a 'too big to fail' bailout possible, which he calls 'capitalist socialism'. He argues the market depends mainly on continued GPU spending by large tech firms, noting Nvidia is guiding to 670 billion for fiscal 2028, so the market could still fall even if the two AI companies survive. He describes OpenAI and Anthropic as now largely symbolic, with GPU sales as what keeps the market going.
- My Nvidia Stock Price Prediction for 2027 Is More Bullish Than You Might Expect
Nvidia shares trade at $214.13, up 15.08% year-to-date and 883.76% over five years, after a 6.61% drop last week in a global tech sell-off over AI funding worries. The consensus price target is $328.72, about 54% above the current price, with 10 Strong Buy, 49 Buy and 1 Sell ratings, and fiscal 2028 EPS estimates rose from $12.7636 to $15.9146 over 90 days. The author says reaching $350 requires a 63% gain, pointing to the Vera Rubin ramp, roughly $1.3 trillion in top-five hyperscaler spending expected in 2027, and guidance for about 70% fiscal 2028 revenue growth. Risks include guidance assuming zero China data center compute revenue, $279 billion in supply commitments, and AI funding worries. The author views a 22x multiple on next year's earnings as reasonable if Vera Rubin ramps as planned.
- BC-Most Active Stocks
The Associated Press table lists the most active stocks on the Nasdaq on October 23, 2026, led by 22nd Century Group (XXII) with 180,237,105 shares traded, followed by Lucid Diagnostics (LUCD) with 67,595,303 and Algorhythm Holdings with 62,959,777. Larger names in the list include Intel, NVIDIA, Tesla, Apple, Micron, Amazon, Meta and Alphabet, each with its high, low, last price and change. The text says it also covers NYSE and NYSE American most active stocks, but only the Nasdaq list appears in the content.
- Global Large Capacity Batteries Market: Size, Share, Trends and Forecast to 2031 Featuring Profiles of Tesla, LG Chem, Panasonic Corp., Samsung SDI Co., BYD Company and More
The global large capacity batteries market is forecast to grow from USD 129.11 billion in 2025 to USD 321.29 billion by 2031, a 16.41% compound annual growth rate, driven by renewable integration, grid modernization and data center demand. China's cumulative installed new energy storage capacity reached 101.3 gigawatts in 2025, per the China Energy Storage Alliance. Challenges include raw material supply volatility, and the IEA estimates the cost of producing battery cells in the US and Europe was about 40% to 50% higher than in China in 2025. Trends include sodium-ion batteries moving to utility-scale use, such as Peak Energy's master supply agreement for up to 4.75 gigawatt-hours for Jupiter Power from 2027, and LFP chemistry, with China installing 244 gigawatt-hours in the first half of 2025, up 73% year on year.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.