I Called Micron's Surge a Few Months Ago. Here's How High I See the AI Stock Going This Year.

• Micron banal has soared since September arsenic a shortage of representation chips is driving up prices.

• The banal inactive looks inexpensive astatine a guardant P/E of conscionable 12.

• It conscionable broke crushed connected what volition beryllium the biggest semiconductor manufacturing installation successful the U.S.

• 10 stocks we similar amended than Micron Technology ›

Micron (NASDAQ: MU) has been 1 of the biggest winners of the artificial quality (AI) boom, and it was astir the top-performing banal connected the S&P 500 past year, finishing up 239% arsenic you tin spot from the illustration below.

The banal has continued to rally into 2026, and you tin spot that astir of the gains came successful the past 3rd of the year. Last September, I predicted that Micron would soar implicit the adjacent 3 years, and it's exceeded those expectations, jumping much than 150% since then. Micron's momentum has lone accelerated since then, driven by a memory-chip shortage successful the industry, which driven up prices, and the company's ain beardown execution.

After breaking retired since September, here's what to expect for Micron this year.

Through Jan. 23, Micron banal is already up 40% year-to-date connected signs that the representation shortage is lone getting worse and prices are continuing to rise.

Intel said connected its net telephone past Thursday that proviso constraints and rising prices successful representation person go "a precise large challenge," arsenic CEO Lip-Bu Tan called it, and Wall Street analysts person observed successful caller weeks that proviso and request dynamics for representation proceed to tighten, favoring further terms increases.

Micron has already contracted retired its full high-bandwidth representation proviso for 2026, but what happens present volition interaction pricing into 2027 and perchance 2028.

Meanwhile, the institution is undertaking a large capableness enlargement task arsenic it conscionable broke crushed connected a $100 cardinal leading-edge representation manufacturing analyzable successful upstate New York that volition person up to 4 fabs (or factories) and volition beryllium the largest semiconductor installation successful the U.S., with accumulation aiming to commencement successful 2030.

That's a reminder of different of Micron's competitory advantages, arsenic determination are lone 3 large representation spot manufacturers successful the satellite and the different two, SK Hynix and Samsung, are based successful South Korea. While Intel has gotten much attraction from the national authorities arsenic a nationalist interest, Micron is larger than Intel some by gross and marketplace cap, and the caller shortage successful representation shows however important its merchandise is.

Predicting a company's stock terms is hard arsenic a batch of factors play into the terms of a stock, including marketplace sentiment, but fixed the momentum successful memory, rising spot prices, and Micron's ain still-cheap valuation astatine a guardant P/E of conscionable 12, I deliberation a stock terms of $600, up 50% from today, is simply a tenable people for the banal by the extremity of the year.