Micron Stock Is Up Over 1,000% Since 2025 and Is Now a $1 Trillion Company. Is It Still a Buy?

If you bought Micron (NASDAQ: MU) stock at the start of 2025, you're up more than 1,000% on your investment. Many investors dream of seeing that many zeros on their percentage gain on a single stock, but few actually get those returns.

These gains have allowed Micron to become a $1 trillion company, potentially meeting all of the expectations that investors had for the company.

Unfortunately, investors can't go back in time and buy Micron stock to capture the massive upside. The only thing left is the future, but does Micron still have room to run? Let's take a look and see where Micron could end up.

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Micron is capitalizing on a memory chip shortage

Micron makes both DRAM and NAND memory, each of which is in short supply due to the massive data center build-out. DRAM is in high demand due to its use in powerful computing units like GPUs, and NAND is necessary for long-term data storage. As the AI build-out continues to ramp up, Micron and its peers are going to continue struggling to keep up with demand, so this supply crunch could last for several more years.

That's good news for investors, as memory demand is a cyclical industry. Nobody knows how long cycles will last, which is why Micron's stock normally trades for a hefty discount to its peers. That's why it trades for well under five times forward earnings at the start of its fiscal year, but has exploded to 16 times forward earnings (a more reasonable valuation, even for a cyclical company) right now.

MU PE Ratio (Forward) data by YCharts

However, that's just this fiscal year (FY). If you look ahead to FY 2027, the stock trades at a cheap 9 times 2027 earnings.

MU PE Ratio (Forward 1y) data by YCharts

That's because there's still monster growth ahead for Micron, as the memory chip shortage is far from over. Wall Street analysts expect Micron to deliver 60% revenue growth during FY 2027, and there could be even further growth beyond 2027 as data center spending ramps up even more.

All of this bodes well for Micron's future, and makes the stock a potential buy. While the days of 1,000% or more returns are likely over for Micron's stock, it can still offer solid, market-beating returns from today's levels. As a result, I think investors can still buy the stock, as long as their expectations aren't too high.

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.