MU - Will Micron Be a Trillion-Dollar Stock by 2035?
2024-01-23 07:30:00 ET
Micron Technology (NASDAQ: MU) is experiencing something that has eluded it for decades -- a sustained bull market . For most of the PC era, volatility in the memory chip market tended to wipe out the stock's gains whenever an inevitable downturn occurred. So devastating was this trend that at one point in 2016, Micron stock traded at 1994 levels.
However, the advent of artificial intelligence (AI) brought about a secular bull market in the memory chip market. Consequently, Micron is better positioned to ride out bear markets, and with that improvement, it reached a $98 billion market cap . But does that mean the stock can reach a $1 trillion market cap by 2035?
At a $98 billion market cap, a stock has to rise by around 24% annually to reach $1 trillion by 2035. Micron stock has risen by nearly 50% over the last year, which seems promising at first glance.
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Will Micron Be a Trillion-Dollar Stock by 2035?