Prediction: This Will Be the Best-Performing AI Stock of 2027

With November here and 2027 right around the corner, it’s time to start thinking about which stocks could be the best performers in 2027. The reality is that the big hedge funds and money in the market are already thinking about this, and there could be some sizable movement in the stock market in the last two months of the year as a result.

So, what do I think will be the best-performing artificial intelligence (AI) stock of 2027? If you followed AI stocks in 2026, it’s a repeat of one of the best performers: Micron (NASDAQ: MU). Micron has had a great year and is the fourth-best performing stock in the S&P 500 (SNPINDEX: ^GSPC) in 2026, up over 200%. I think it could do that again in 2027. How? It just needs to do what it says it will.

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Investor celebrating Micron's stock while spotting its price on their phone.
Image source: Getty Images.

Micron is in a great position to triple (at least) again

Micron makes memory chips, which are critical components in nearly every computing device. The AI build-out is no exception, as these components are utilized in AI computing units as well. However, the memory chip industry was not prepared for the massive wave of demand, so companies in this industry quickly ran out of production capacity. High demand and low supply equals rising prices, and that’s exactly what happened to memory chips this year.

And next year doesn’t look any better (or even 2028, for that matter).

Micron’s management team informed investors that they see market conditions getting worse in 2027 and 2028 compared to 2026. While that sounds like a bad omen, if you’re a Micron investor, that’s a good thing. Tight supply equals high prices, and an increased supply crunch could lead to even higher prices, which will allow Micron’s revenue and profits to increase at an even more rapid pace.

MU Revenue (Quarterly YoY Growth) Chart

MU Revenue (Quarterly YoY Growth) data by YCharts.

Furthermore, Micron plans to have a new production facility up and running during the middle of 2027. Increased output with high prices will lead to a sizable revenue and profit jump later on in 2027, and that will have a major impact on the stock.

But as a cherry on top, none of this is priced into Micron’s stock right now.

MU PE Ratio Chart

MU PE Ratio data by YCharts.

Micron traded for about 20 to 25 times earnings on average over the two years. If Micron can return to that level and achieve analyst estimates, the stock could rise 4x to 5x in 2027. There could be a stock that outperforms that, but with that kind of gain staring investors in the face, I don’t think they need to look any further than Micron.

Should you buy stock in Micron Technology right now?

Before you buy stock in Micron Technology, consider this:

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Keithen Drury has positions in Micron Technology. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.

Prediction: This Will Be the Best-Performing AI Stock of 2027 was originally published by The Motley Fool

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