If You Invested $1,000 In Micron Stock 20 Years Ago, How Much Would You Have Now?

Micron Technology, Inc. MU, one of the largest semiconductor companies in the world specializing in memory and storage chips, is set to report its Q4 2024 earnings on September 26. Wall Street analysts expect the company to post an EPS of $1.11, up from ($1.07) in the year-ago period. Quarterly revenue is expected to be $7.69 billion, up from $4.01 billion in the year-ago period.

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If You Bought Micron Stock 20 Years Ago

Twenty years ago, the company's stock traded around $12.75 per share. If you had invested $1,000, you could have bought approximately 78 shares of Micron stock. Currently, shares are trading at $108.81, which means your investment's value could have soared to $8,534 because of stock price appreciation. But wait, the company also paid dividends during these 20 years, although tiny.

Micron’s dividend yield is currently 0.43%. Over the last twenty years, it paid around $1.235 in dividends per share, which means you could have made nearly $97 from dividends alone. 

Summing up $8,534 and $97, we end up with the final value of your investment, which is $8,630. This is how much you could have made if you had invested $1,000 in Micron stock 20 years ago. This means a total return of 763%. In comparison, S&P 500 total return for the same period is 555.25%.

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What Could The Next 20 Years Bring? 

Micron has a consensus rating of Buy and a price target of $159.08 based on the ratings of 25 analysts. The price target implies a more than 46% potential upside from the current stock price.

Earlier this month, according to our Benzinga Pro report, KeyBanc increased its price target to $165 from $160, reiterating its Overweight rating.

On June 26, Micron announced its Q3 2024 earnings results. Revenues were $6.81 billion, better than the consensus estimate of $6.67 billion. Quarterly EPS was $0.62, beating the expected $0.51.

"Robust AI demand and strong execution enabled Micron to drive 17% sequential revenue growth, exceeding our guidance range in fiscal Q3. We are gaining share in high-margin products like High Bandwidth Memory (HBM), and our data center SSD revenue hit a record high, demonstrating the strength of our AI product portfolio across DRAM and NAND. We are excited about the expanding AI-driven opportunities ahead and are well positioned to deliver a substantial revenue record in fiscal 2025," said Sanjay Mehrotra, President and CEO of Micron Technology.

Looking ahead, Micron issued guidance for Q4, expecting revenues of $7.60 billion, plus/minus $200 million.

Given Micron stock’s historical stock price appreciation and expected upside potential, growth-focused investors may find it attractive. They can also earn passive income from the company's consistent dividend payments. 

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