Micron (NASDAQ: MU) has been a top performer in the market this year, with the stock more than tripling so far in 2026. That places it in the top five best-performing stocks in the S&P 500 (SNPINDEX: ^GSPC). Many investors might think they’ve missed the boat, but I don’t think that’s the case.
There’s a ton of upside ahead for Micron, and most investors aren’t ready for it. A $1,000 investment in Micron only buys you about one share, but I think that $1,000 could easily transform into more than $4,000 by the end of 2027.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Micron’s business is shifting
Micron makes memory chips, which are used in all sorts of computing devices ranging from laptops to smartphones to AI computing units. There isn’t a lot that separates one memory chip from another, so clients, in the past, often chose what was cheapest for them. This created a race to the bottom for who could price their memory the lowest, and prices only rose when supply was tight.
This year, all the memory chip manufacturers ran out of production capacity, which caused prices to skyrocket. This placed the power in the memory chip companies’ hands for once, and Micron is taking advantage of it. Instead of just letting memory chip prices rise out of control, it is starting to enter into long-term supplier agreements with its clients. This sets floor and ceiling limits for its chips, stabilizing the market.
These agreements are also take-or-pay arrangements, so Micron is locking in a lot of revenue. In fact, Micron estimates that 35% of its revenue is locked in through 2030. This is a big deal, and it is transforming Micron’s business to look more like a regular chip supplier than a commodity business.
However, Micron’s stock still trades like it’s highly cyclical, and this is the investment opportunity that needs to be seized.
Micron’s stock is dirt cheap
Micron has been very vocal about its strong growth potential. While market conditions were bad in 2026, Micron told investors that 2027 and 2028 would be worse. What’s noteworthy is that Micron has new production facilities coming online in mid-2027 and into late 2028, so chip supply will be increasing, but with demand rising at an even faster rate, it won’t be enough. This should cause Micron’s revenue to grow rapidly, as prices will still be high as more capacity comes online.
