Micron Technology shares are projected to see significant growth through 2027 due to high demand for AI-driven memory.
Micron Technology shares have experienced a remarkable 637% surge over the past year, driven primarily by the high demand for dynamic random-access memory (DRAM) and NAND flash storage. This growth is fueled by the expansion of artificial intelligence (AI) data centers, which require faster compute memory and ample storage to run workloads efficiently. High-bandwidth memory (HBM) has become a critical component in AI accelerators, creating a supply shortage as manufacturers prioritize HBM production over traditional memory. Analysts expect the memory crunch to persist into next year, with DRAM prices projected to spike by 125% and NAND flash prices by 234%. Consequently, Micron Technology is expected to have earnings per share increase by nearly 9x in the current fiscal year. While the stock currently trades at a higher price-to-earnings ratio than its three-year median, a return to its median ratio suggests a potential stock price jump of 2.8x in just over a year. Despite a recent monthly sell-off, the outlook for Micron Technology remains bullish, suggesting that investors should consider buying the stock following its recent dip.