Micron, will it break $3,000 in 10 years? AI bubble collapse is the biggest variable

▲ Micron (MU), Nvidia (NVDA), Artificial Intelligence (AI) / AI-generated image ©

A long-term forecast suggests that Micron Technology, which has emerged as a beneficiary of AI memory semiconductors, could see its stock price exceed $3,000 by 2036 if it maintains its current growth trajectory.

According to cryptocurrency media Watcher.Guru on August 4 (local time), Micron has rapidly increased its revenue and earnings per share (EPS) in recent quarters, establishing itself as a prime beneficiary of the AI craze. Major Wall Street investment banks are also presenting high target prices based on increasing demand for memory semiconductors.

Citi set Micron's target price at $1,400, and Bernstein at $1,300. JPMorgan estimated $1,540, while Barclays and Cantor Fitzgerald projected the highest level at $2,000. However, specific timelines and paths to reach these target prices were not provided.

Micron holds a unique position by supplying memory semiconductors to both Nvidia and AMD. Analysis suggests that Micron can continue its role in the supply chain regardless of which of the two companies leads the AI semiconductor market. If the AI industry maintains its current growth trajectory, there is a possibility that the stock price could break $3,000 by 2036. However, if a stock split occurs during this period, the displayed stock price could be lower and the number of shares could increase.

The biggest variable is the possibility of a bubble in the AI industry. Michael Burry, who predicted the 2008 U.S. housing market collapse, warned that the current AI market might be in a bubble similar to the late 1990s. If the bubble bursts, Micron's stock price could also be severely impacted.

Nvidia CEO Jensen Huang predicted that even if an AI bubble exists, it would not burst within the next five years. The media noted that while AI growth may continue long-term, market corrections or sharp declines could occur over the 10 years until 2036, making it difficult to accurately forecast Micron's long-term stock price.

*Disclaimer: This article is for investment reference only and does not take responsibility for investment losses based on it. The content should be interpreted for informational purposes only.*