Here's How Much You'd Have If You Invested $1000 in Micron a Decade Ago

Zacks Equity Research
·4-min read

How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in Micron (MU) ten years ago? It may not have been easy to hold on to MU for all that time, but if you did, how much would your investment be worth today?

Micron's Business In-Depth

With that in mind, let's take a look at Micron's main business drivers.

Idaho-based Micron Technology has established itself as one of the leading worldwide providers of semiconductor memory solutions.

Through global brands, namely Micron, Crucial and Ballistix, Micron manufactures and markets high-performance memory and storage technologies including Dynamic Random Access Memory (DRAM), NAND flash memory, NOR Flash, 3D XPoint memory and other technologies. Its solutions are used in leading-edge computing, consumer, networking and mobile products.

A major portion of the revenues is derived from DRAM sales. The company's mission is to be the most efficient and innovative global provider of semiconductor memory solutions.

Micron reported revenues of $15.54 billion in fiscal 2023. The company has four reportable segments:

Compute and Networking Business Unit (CNBU): The unit comprises of DRAM and NOR Flash products that are sold to the computer, networking, graphics, and cloud server markets, and NAND Flash products which are sold into the networking market. CNBU delivered revenues of $5.71 billion (37% of total revenues) in fiscal 2023.

Mobile Business Unit (MBU): The unit comprises Micron’s discrete DRAM, discrete NAND and managed NAND (including eMMC and universal flash storage (UFS) solutions) products that are sold to smartphone and other mobile-device markets. MBU generated revenues of $3.63 billion (23%) in fiscal 2023.

Storage Business Unit (SBU): The unit accounts for solid state drives (SSDs) and component-level solutions sold into enterprise and cloud, client and consumer storage markets as well as other discrete storage products sold in component and wafer forms to the removable storage markets. SBU’s revenues grossed $2.55 billion (16%) in fiscal 2023.

Embedded Business Unit (EBU): The unit includes Micron’s discrete DRAM, discrete NAND, managed NAND and NOR products, which are sold to the automotive, industrial and consumer markets. EBU’s revenues logged $3.64 billion (24%) in fiscal 2023.

The company struggles with intense competition from Intel, Samsung Electronics, SK Hynix, Toshiba Memory and Western Digital Corporation.

Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Micron ten years ago, you're probably feeling pretty good about your investment today.

A $1000 investment made in June 2014 would be worth $4,363.64, or a gain of 336.36%, as of June 26, 2024, according to our calculations. This return excludes dividends but includes price appreciation.

The S&P 500 rose 179.11% and the price of gold increased 69.30% over the same time frame in comparison.

Analysts are forecasting more upside for MU too.

Micron is benefiting from improved market conditions, robust sales executions and strong growth across multiple business units. The positive impact of inventory improvement in the data center, as well as stabilization in other markets, such as automotive, industrial and others, is contributing to top-line growth. It anticipates the pricing of DRAM and NAND chips to increase next year, thereby improving its revenues. The pricing benefits will primarily be driven by rising AI servers, causing a scarcity in the availability of cutting-edge DRAM and NAND supply. Also, 5G adoption in the Internet of Things devices and wireless infrastructure is likely to spur demand for memory and storage. The stock has outperformed the S&P 500 year to date. However, the United States and China’s tit-for-tat trade war is a major threat to the company.

Shares have gained 6.37% over the past four weeks and there have been 4 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Micron Technology, Inc. (MU) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

  • Up next
  • Up next
  • Up next
  • Up next

Latest stories

  • MYAirline co-founder is being sued again, by over 200 investors this time

    KUALA LUMPUR, June 28 — MYAirline Sdn Bhd co-founder Datuk Allan Goh Hwan Hua is being sued again, but from a different...

  • Broadcom (AVGO) Up 42.1% in 2024: Is it Worth Watching?

    Broadcom's stock is widely beating the performance of its sector in 2024, and market participants should keep a close watch.

  • New inflation reading offers hope for Fed rate cuts later this year

    The Fed got another positive signal that inflation is easing after running hotter-than-expected in the first quarter, but the central bank still likely needs more time before cuts can begin in 2024.

  • Shell (SHEL) Advances Carbon Capture Initiatives in Canada

    Shell's (SHEL) Polaris project is being developed to capture an estimated 650,000 tons of carbon dioxide from Shell's refinery and chemical complex in Scotford, Alberta.

  • New Strong Buy Stocks for June 28th

    AMSC, GOLD, ODP, SSL and KNBWY have been added to the Zacks Rank #1 (Strong Buy) List on June 28, 2024.

  • New Strong Sell Stocks for June 28th

    DOOO, CNM and ARCO have been added to the Zacks Rank #5 (Strong Sell) List on June 28, 2024.

  • AMD Stock Down 8% in a Month: Is It Worth Buying the Dip?

    AMD shares have dipped in the past month, reflecting a shift in market sentiment amid the growing dominance of NVIDIA.

  • 4 Stocks to Watch That Recently Announced Dividend Hikes

    Stocks like General Mills, Inc. (GIS), Tsakos Energy Navigation Limited (TNP), HEICO Corporation (HEI) and Delta Air Lines, Inc. (DAL) recently hiked dividends.

  • Jobless claims drop, GDP holds steady: Top stories

    Markets (^GSPC,^DJI,^IXIC) are digesting new economic data, with fresh jobless claims and GDP figures giving Wall Street an updated view of the economy. Initial jobless claims for the week ending in June 22 were 233,000, down 6,000 from the previous week. This drop hints at a slight cooling in the job market. The GDP growth rate for the first quarter was reported at 1.4%, coming in line with analyst expectations. Yahoo Finance's Josh Schafer breaks down these numbers, offering insights into what they reveal about the current state of the economy. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Angel Smith

  • Is Kirby (KEX) Stock Outpacing Its Transportation Peers This Year?

    Here is how Kirby (KEX) and Matson (MATX) have performed compared to their sector so far this year.

  • Why Is Pure Storage (PSTG) Up 3.1% Since Last Earnings Report?

    Pure Storage (PSTG) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

  • 3 Great Stocks to Buy on the Dip in July Down At Least 30%

    Investors should focus on taking advantage of the next market pullback whenever it comes and look for strong stocks that have already been punished for fading earnings outlooks and other near-term headwinds in the first half of 2024.

  • Stocks rise after cool inflation data feeds into rate cut hopes

    The three major indexes (^DJI,^GSPC, ^IXIC) rose slightly after Friday's market open. The core Personal Consumption Expenditures (PCE) index, the Federal Reserve's preferred inflation gauge, rose 0.1% in May from April, which was in line with expectations and slower than April's 0.3% increase. The cooler read is bolstering traders' hopes that the Fed will cut rates sooner rather than later. Brad Smith, Seana Smith, and Jared Blikre recap the market action at the open.  For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Stephanie Mikulich.

  • 3 Top-Ranked Mutual Funds for Your Retirement

    Adding these three top-ranked, best-performing, and well-managed mutual funds to your retirement portfolio could maximize your returns.

  • Why Greenbrier Companies (GBX) is a Great Dividend Stock Right Now

    Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Greenbrier Companies (GBX) have what it takes? Let's find out.

  • Thames Water board approved £150m payout hours before funding U-turn

    Exclusive: Ofwat to investigate circumstances around payment of dividend to intermediate parent company

  • PCE data was 'the best one can expect': Economist

    The latest Personal Consumption Expenditures (PCE) data for May came in line with analyst expectations, with a reading of 2.6%. To understand the implications for future Federal Reserve rate cuts, BMO senior economist and managing director Jennifer Lee joins Morning Brief to offer her insights. Lee describes the PCE data as "the best one can expect," suggesting it should bolster the Fed's confidence in easing monetary policy. She notes a "softness" in services spending, which she views positively as it may help cool the previously sticky services inflation. Despite this, Lee observes that consumers continue to spend on discretionary items. Based on this report, Lee anticipates a potential Fed rate cut in September. She explains, "Over the next couple of months, we'll accumulate more inflationary data. This PCE report is one of the more significant pieces we've seen since the May CPI. We need to see all inflation indicators aligning, which will give the Fed the comfort and confidence to start cutting rates in September." For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Angel Smith

  • Ether to Hit $6.5K Later This Year Driven by Inflows Into Spot ETFs: Analyst

    The crypto market is being overly pessimistic about the imminent launch of spot ether ETFs in the U.S. and net inflows could hit $20 billion in the first year, Steno Research said.

  • Is AI in a bubble similar to the 1990s telecom bust?

    Micron Technology's (MU) post-earnings decline and Nvidia's (NVDA) shaky sell-off have not been a vote of confidence for the AI landscape to investors this week. Is this the first sign of an AI bubble materializing? To help answer these questions and more, Lead Edge Capital Founder Mitchell Green comes onto Yahoo Finance's Catalysts to talk about the long-term vision of the artificial intelligence trade. "If you believe that the hyperscalers are who are going to spend giants amount of money, I should say hyperscalers and the Singaporean government and the Middle Eastern governments are going to spend more money next year on this stuff. Then it's probably a long. If you think that this CapEx could be some sort of slight bubble, it's probably a short. What we think is it's very real, but this stuff is going to take a lot longer to play out than people think." Green states it could be some of the AI "incumbents" that actually come out on top at the end of the long-term adoption timeline. For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Luke Carberry Mogan.

  • Here's Why You Should Give Schneider (SNDR) Stock a Miss Now

    For 2024, Schneider (SNDR) decreases its adjusted earnings per share guidance to the range of $0.85-$1.00 from the previously guided range of $1.15-$1.30.