If You'd Invested $100 in Micron 5 Years Ago, Here's How Much You'd Have Today

Core Viewpoint - The technology sector, particularly Micron Technology, is highlighted as having significant potential for explosive returns, especially in the context of the AI revolution [1]. Group 1: Micron Technology Performance - Micron's stock has appreciated approximately 372% since February 10, 2021, translating to a $100 investment growing to $472, which represents a 36.3% annualized return compared to the stock market's average of 8% to 10% [2]. - The stock was at a near-term peak five years ago but experienced a crash in 2022 due to the end of the pandemic, rising interest rates, and a slowdown in key markets [3]. Group 2: AI Impact and Market Projections - The AI revolution has enabled Micron to not only recover but exceed previous stock highs, with high-bandwidth memory (HBM) demand projected to grow to $100 billion by 2028, surpassing the entire DRAM industry's size five years ago [4]. - HBM production requires three to four times the equipment compared to traditional DRAM, leading to a persistent supply shortage and significant demand [4]. - Analysts predict DRAM prices will increase over 90% in Q1 2026, with an additional 20% increase expected in Q2 [5]. Group 3: Future Earnings and Market Outlook - There is uncertainty regarding whether the memory industry will face a severe bust after the current boom or if it has entered a new era of sustainable prices and profits [6]. - Analysts forecast Micron to earn an average of $33.51 in 2026 and $42.97 in 2027, totaling $76.50 in earnings, which is nearly equivalent to Micron's stock price of around $90 in February 2021 [6].