After an incredible 981% jump – is it still worth investing in Micron stock?

Shares of chipmaker Micron have surged 981% since the beginning of 2025, thanks to the massive demand for memory components for artificial intelligence. Despite the impressive jump, the stock has recently experienced volatility due to investor concerns that the industry's golden age might be ending, especially as manufacturers accelerate the expansion of their production capacity. Now, many are wondering if they have missed the boat.

Is the stock really expensive?

Despite the meteoric rise, according to the investment consulting firm The Motley Fool, Micron is trading at a historical price-to-earnings ratio of 22 and a forward price-to-earnings ratio of only 6 — a figure significantly lower compared to the NASDAQ index average. In the previous quarter, the company's revenue jumped 4.5 times compared to last year and totaled 41.5 billion dollars, while the adjusted earnings per share jumped 13 times and reached 25.11 dollars, which presents a particularly attractive valuation.

On the other hand, the main concern of investors stems from a slowdown in the profit margin growth rate. The company's operating profit margins reached 81.2% in the third quarter of the 2026 fiscal year, but the company expects that gross profit margins will grow by only 1% in the fourth quarter to 86%. This slowdown in the growth rate causes analysts to estimate that Micron's profit growth rate will moderate in the 2028 fiscal year.

100 billion dollar agreements

Despite the concerns, global demand for memory is expected to remain higher than supply until the end of the decade, with estimates suggesting a shortage of 28.7 exabytes of DRAM memory in 2030. In addition, Micron has 16 long-term agreements with customers, with 14 of them expected to generate revenue of at least 100 billion dollars over the duration of the contracts, which ensures stability going forward.

On Wall Street, there is great optimism regarding the company's future. Out of 57 analysts covering the stock, almost all give it a buy recommendation, with a median target price of 1,600 dollars, representing an upside potential of about 75%. The combination of favorable valuation, rigid demand, and giant agreements shows that it is possible that for many investors, the opportunity in Micron still exists.