Prediction: This Is How Much Micron Stock Will Be Worth By the End of 2027

Micron Technology (NASDAQ:MU) has emerged as one of the leading players in this stage of the artificial intelligence (AI) story, and that has helped the stock skyrocket. Over the past year and a half, the maker of memory and storage has seen its stock price surge more than 1,100%. This is as demand for its chips has taken off, with the company delivering massive revenue and profit growth.

Meanwhile, the S&P 500 has climbed, even reaching record levels in recent days, but the pace hasn't been uninterrupted. Investors have worried about the depth of spending on AI infrastructure and whether it's sustainable.

So, right now, you might be wondering about what's ahead for Micron stock. My prediction is it will reach the following level by the end of 2027...

Micron's growth story

Before we talk about that, however, let's take a quick look at the Micron story so far. This company isn't new to the picture. In fact, it's been around for nearly 50 years, providing the memory and storage solutions needed for a variety of devices. Demand for these chips is cyclical, and that's resulted in growth ebbing and flowing over time, but progressively the company has increased revenue to levels well into the billions of dollars. And in recent times, the gains have been particularly steep.

MU Revenue (Annual) data by YCharts

This is thanks to demand from AI customers, as the application of AI in the real world gains momentum. We are in the early days of this transfer of AI from development into use, so we could imagine sustained growth here in the quarters and years to come. Agentic AI, involving AI handling problems and taking action, needs a great deal of memory, and that's fantastic news for Micron and its peers.

Demand has been so high in recent quarters that it's helped create a memory shortage -- so memory companies have struggled to fulfill orders and have taken steps to increase production.

All of this supports the idea of stock price growth well into the future for Micron. Still, companies' efforts to increase supply could eventually push prices downward, weighing on Micron's future profitability. At the same time, any potential slowdown in spending on the AI infrastructure build-out also represents a risk.

Considering all of these points, where will Micron stock be by the end of 2027? Here's my prediction.

Micron trades at about 8x sales

Micron stock today trades for about $1,035, and this is at a price-to-sales ratio of 8.8. It's traded higher than 18x sales, but this was an exceptional level earlier this year. Generally, the stock has traded below the level of 8 over time.

I predict that Micron stock, considering analysts' average revenue expectation of $319 billion next year, could double, finishing 2027 at about $2,070. At that level, the stock would trade at 7.2x sales, well within Micron's historic range. At the same time, market value would rise to $2.3 trillion, which is also reasonable considering the trillion-dollar valuations of AI peers, from chip designers to cloud service providers. So, with AI demand on the rise and supply for memory short, Micron could continue to see its stock price soar over the coming year -- even after its spectacular 2026 performance.

Of course, this is just one calculation, demonstrating that, mathematically and amid ongoing momentum in the industry, Micron could reach such a level. But it's important to keep in mind that even if Micron's earnings continue to soar, investors may anticipate an end to the supply shortage or any slowdown in AI spending -- and this could weigh on the company's stock performance.

Even if my prediction is wrong, though, there's reason to be optimistic about Micron over the long run, as AI seems here to stay and this memory giant has a well-established track record of delivering growth over time.

Adria Cimino 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.