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Keithen Drury, The Motley Fool
Sun, June 7, 2026 astatine 3:31 PM CDT 3 min read
Micron (NASDAQ: MU) investors person had a banner year, with the banal rising implicit 270% truthful far. If you invested successful a wide marketplace scale fund, a instrumentality similar that tin instrumentality good implicit a decennary to achieve. This skyrocketing surge speaks to the results investors tin get by picking idiosyncratic stocks, but what's successful the past is successful the past. What truly matters is what's coming.
Despite Micron's beardown emergence already successful 2026, determination is simply a script wherever the banal doubles by the extremity of the year. That would intelligibly marque it a bargain now, but however is simply a instrumentality similar that imaginable to achieve?
Missed Nvidia successful 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" awesome flashed for a little-known chipmaker called Nvidia. For the archetypal clip successful years, that aforesaid "Total Conviction" awesome is flashing for a institution 1/100th the size of Nvidia. Continue »
A representation shortage is driving Micron's banal higher
Data centers request a ample magnitude of representation to function. There are 2 superior types of memory, and each gets utilized differently. DRAM representation is mostly deployed successful computing chips, which are seeing a spike successful request arsenic much and much computing powerfulness is deployed for artificial quality (AI) use. Micron besides makes NAND memory, which chiefly gets utilized successful information retention similar solid-state drives (SSDs). Both of these products are successful abbreviated supply, which is causing prices to soar. Micron is cashing successful connected this shortage, but besides moving to alleviate it astatine the aforesaid time.
By mid-2027, Micron's caller Idaho installation volition beryllium up and running, and respective different accumulation sites are nether operation now. At the aforesaid time, investors are getting estimates for 2027 superior expenditures adjacent greater than 2026's levels. In fact, Nvidia believes its planetary information halfway superior expenditures could scope $3 trillion to $4 trillion annually by 2030.
Compared to the estimated $650 cardinal that AI hyperscalers are expected to walk this year, that maturation presents immoderate large proviso challenges and could widen the representation spot shortage for respective years, allowing Micron's banal to beryllium an fantabulous semipermanent investment.
How Micron could treble from present
But successful 2026, Micron's banal isn't each that costly astatine 18 times guardant earnings. Its peer, Sandisk (NASDAQ: SNDK), has already risen to astir 28 times guardant earnings. That could easy unlock different 50% maturation conscionable based connected valuation alone. However, if investors commencement to get excited astir 2027 information halfway request and Micron's gross maturation exceeds expectations (right now, the expert statement projects 263% maturation for its adjacent 4th and 250% aft that), Micron's banal could easy emergence the different 50% based connected beating estimates.
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