Prediction: Micron Stock Will Be Worth More Than $3,000 by the End of 2027

At the end of June, Micron (NASDAQ: MU) stock looked like an unstoppable rocket ship. It was up more than 300% to start the year and had topped $1,200 per share. Now, it has sold off to about $900 as investors take some gains off the table.

However, I think this is a perfect buying opportunity for those who missed out on the initial run, as a move to $3,000 could be coming by the end of 2027. That's over a triple in just under a year and a half of investing, making Micron a no-brainer buy if it can pull it off.

Let's take a look at how it's possible, and how Micron can get it done.

Micron is riding a huge demand wave

Micron makes memory chips, which are widely accepted as the current bottleneck of building out artificial intelligence computing capacity. Huge demand and limited supply are driving up prices, benefiting Micron. It can now sell its products for a much higher price than before, without any of its input costs changing. That has led to profits rising much faster than revenue.

MU Revenue (Quarterly YoY Growth) data by YCharts

As long as there is a significant supply imbalance in memory chips to meet AI computing demand, I'd expect this relationship to continue. But how long will it last?

During Micron's latest earnings report, management commented that they believe the tightness in the memory chip market will persist beyond 2027, so there could be several more years of strong growth ahead for Micron, especially as it ramps up capacity in mid-2027.

But will that translate into a $3,000-per-share stock? I think it could.

Micron's fiscal year ends in August, so using FY 2027 projections to value the stock isn't out of line. When 2027 earnings are used to value Micron's stock, it trades at a mere 5.8 times 2027 earnings. At its recent $900 per share price, Micron would need to rise 233% to reach that level.

If it hits analyst projections by the end of FY 2027 and trades at its recent trailing price-to-earnings ratio of 20.4, that would indicate 252% growth -- above the threshold necessary to reach $3,000 per share.

Investors will see how this plays out over the next year or so, but I think there's a real possibility that Micron's stock could more than triple.

Keithen Drury has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.