Will Micron Stock Jump Another 200% By 2027? History Has a Clear Answer

Micron Technology (NASDAQ:MU) has delivered eye-popping gains of more than 8x over the past year, driven by an incredible increase in the company's revenue and earnings amid a favorable memory pricing environment.

However, investors have been booking profits in Micron stock lately. It has slipped 16% from the 52-week high it reached a couple of months ago, and that's quite surprising, since Micron's stunning growth isn't showing any signs of slowing. In fact, a closer look at the memory market's demand-supply dynamics will make it clear that the catalyst driving Micron's phenomenal growth over the past year is here to stay over the next year as well.

But will that be enough for this semiconductor stock to regain its mojo and jump another 200% by the end of 2027? Let's find out.

Source: Micron Technology.

Meet the historical trend that has led to an astronomical jump in Micron stock

Artificial intelligence (AI) data centers require faster compute memory to move huge data sets quickly to graphics processing units (GPUs), server processors, and custom AI chips. This faster compute is enabled by stacking multiple dynamic random-access memory (DRAM) chips to create high-bandwidth memory (HBM).

As a result, manufacturing HBM requires 3x the wafer capacity of a conventional DRAM chip. It is worth noting that global HBM revenue nearly doubled in 2025, according to Yole Group. Not surprisingly, memory demand has substantially exceeded supply, as memory manufacturers have prioritized HBM production due to higher margins.

JPMorgan notes that DRAM prices will jump by a whopping 400% from the beginning of 2024 to the end of 2026. As Micron derives over three-fourths of its revenue from DRAM sales, it is easy to see why the company's revenue and earnings growth have shot up over the past year.

MU Revenue (TTM) data by YCharts

The good news for Micron investors is that the memory market's growth is poised to continue in 2027. Market research firm TrendForce estimates that the global DRAM market's revenue could increase to $903.3 billion in 2027 from $618.7 billion this year. Micron has a 25% share of the DRAM market, according to Counterpoint Research. A similar share will increase the company's DRAM revenue to almost $226 billion in 2027, based on TrendForce's DRAM market size estimate.

That's significantly higher than the $90 billion in revenue Micron has generated over the trailing twelve months. Also, Micron's share of NAND flash memory stood at 13% at the end of the previous quarter. It is worth noting that NAND flash memory accounts for the rest of Micron's top line. So, the 40% increase in global NAND flash revenue expected next year to $379.4 billion bodes well for Micron investors.

A 10% share of the NAND flash market in 2027 would bring Micron's revenue from this segment to almost $38 billion. In all, the company's revenue could exceed $260 billion in calendar 2027 if we combine projected NAND and DRAM revenue. That's almost triple the revenue Micron has generated over the past year.

Moreover, Micron's bottom line should also keep growing at an incredible pace. That's because the memory supply shortage isn't expected to go away any time soon. Micron CEO Sanjay Mehrotra remarked on the company's June earnings call:

We expect tight conditions to persist beyond calendar 2027 as a result of AI-driven demand across all segments coupled with structural supply constraints.

Micron peer SK Hynix recently noted that 2027 could be the worst year for the memory industry in terms of supply. This explains why analysts have become bullish on Micron's earnings growth for the current and next fiscal years.

MU EPS Estimates for Current Fiscal Year data by YCharts

But can the stock really jump by another 200%?

We have already seen that Micron has the potential to generate $260 billion in revenue next year, driven by its healthy DRAM and NAND flash market share and the solid growth in both these markets. Micron currently trades at 12 times sales, a slight premium to the U.S. tech sector's average sales multiple of 7.6.

However, Micron's red-hot growth justifies the premium, and it won't be surprising to see it command a bigger premium in the future. Assuming it trades at 15 times sales at the end of 2027 and its revenue hits $260 billion, Micron's market cap could jump to $3.9 trillion. That's 242% higher than its current market cap, indicating that this AI stock could indeed jump by more than 200% by the end of next year, and that's why growth-oriented investors can still consider buying Micron as its bull run isn't over yet.

JPMorgan Chase is an advertising partner of Motley Fool Money. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase and Micron Technology. The Motley Fool has a disclosure policy.