Micron Technology (MU) has been one of the biggest beneficiaries of the AI infrastructure buildout — and according to analysis from InvestorPlace, the run may not be over. The memory chip giant has climbed from roughly $100 per share in 2024 to nearly $1,000 today, a tenfold gain that has left many investors wondering whether they’ve missed the move. Based on where AI spending is headed, the answer from the bullish camp is a clear no.
The thesis rests on a fundamental shift in what’s driving memory demand. Every previous boom cycle in chips — PCs, mobile, cloud — eventually hit a ceiling defined by human population. This one is different. Nvidia’s latest Blackwell GPUs ship with nearly 300 gigabytes of memory per chip, roughly double what the prior generation carried. Every new data center needs more GPUs than the last, and every GPU needs more memory than its predecessor. With hyperscaler AI capital expenditure sitting at an estimated $700–$800 billion annually and Goldman Sachs projecting the figure approaching $1 trillion within two years, there’s no near-term ceiling in sight. Google’s recent $85 billion raise — including $10 billion from Berkshire Hathaway — signals that the hyperscalers are not blinking. Amazon, Microsoft, Meta, and Chinese cloud giants are doing the same in parallel.
For retail investors, the key takeaway is valuation. Despite the massive price appreciation, Micron still trades near 9x forward earnings — only modestly above its five-year historical average of 6.7x. Earnings power has been the real driver: EBIT has climbed from roughly $9 billion in 2024 toward $40 billion on a trailing basis, with Wall Street estimates around $150 billion by 2027. The multiple has barely followed the earnings surge. That said, risk is real: the personal savings rate has fallen to 2.6%, a level last seen before the 2008 crisis. If consumer spending softens and hyperscaler ad revenue cools, the spending race could slow. Investors should size positions accordingly — the music is still playing, but it won’t play forever.
