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

Tech stocks sometimes look costly successful the near-term, but nary assemblage has the imaginable for explosive, multibagger returns than the exertion sector.

Look nary further than representation elephantine Micron Technology (NASDAQ: MU), agelong considered a cyclical "commodity" successful the tech world, but which has truly travel into its ain successful the property of AI.

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Since Feb. 10, 2021, Micron's banal has appreciated astir 372%, including dividends. That means $100 invested successful Micron banal 5 years agone would beryllium worthy a whopping $472 today. That's a 36.3% annualized instrumentality -- a stunning effect compared with the 8% and 10% mean yearly instrumentality of the banal market.

Micron was really trading astatine a near-term apical 5 years ago, lone to clang successful 2022 erstwhile the pandemic ended, involvement rates roseate quickly, and the PC, phone, and unreality server extremity markets crushed to a halt.

However, the artificial quality gyration helped Micron not lone retrieve but turn multiples past erstwhile highs. AI grooming requires a peculiar benignant of DRAM called high-bandwidth representation (HBM). That marketplace is projected to turn to $100 cardinal by 2028, according to Micron management, a fig that's larger than the full DRAM manufacture was 5 years ago!

Not lone that, but HBM requires 3 to 4 times the instrumentality to nutrient arsenic accepted DRAM. Therefore, not lone is request booming, but HBM besides sucks up supply.

No wonderment that has led to a persistent shortage. Analysts task DRAM prices to summation implicit 90% conscionable successful the archetypal 4th 2026, with different 20% terms summation projected successful Q2.

It remains to beryllium seen whether the representation manufacture volition yet person a terrible "bust" aft today's unprecedented boom, oregon whether we are present successful a "new era" of sustainable representation prices and profits.

Only clip volition tell, but here's an astounding stat: Analysts task Micron to gain $33.51 successful 2026 and $42.97 successful 2027 connected average. That $76.50 of net successful conscionable 2 years would astir full Micron's February 2021 banal price, which was astir $90 astatine the time.

Before you bargain banal successful Micron Technology, see this:

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