Micron Technologies’ (NASDAQ: MU) earnings call changed the game on the stock’s prospects, with analysts scrambling to revise their price targets with further bullish alterations. The revenues published on June 24 were nothing short of a fundamental regime shift that made Wall Street realign its options. The company posted a record quarterly revenue of $41.46 billion, outperforming Wall Street’s estimate of $35.69 billion. This was a mind-boggling 346% revenue increase year-over-year that adjusted its earnings per share (EPS) to $25.11. This too outpaced the Wall Street consensus estimate of $20.49.

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This Earnings Call Highlights Micron Stock’s Hidden Pricing Power (MU)

The company confirmed in the earnings call that it is able to fulfill roughly 50% to 65% of the medium-term demand its customers are asking for. When demand is double the maximum manufacturing capacity, the company has ultimate pricing power. The durability of this multi-billion dollar backlog means Micron’s margins are going to stay elevated far longer than the market realizes, easily justifying a premium valuation multiple. This can have a positive effect on Micron stock and can continue its rally further.

What made it more effective in the earnings call is Micron’s 84.9% gross margin. In the chip world, an 84.9% gross margin is practically unheard of for a hardware manufacturer. This proves that Micron has absolute leverage over its buyers and has greater negotiating power. This will help Micron stock in the long run, and even its current price of $1,145 will look cheap. This has led to several Wall Street analysts giving Micron stock a price prediction of $2,000+.

That’s nearly doubling in value again, and traders can net a profit of close to 100%. An investment of $1,000 in Micron stock could turn into $2,000 if the price predictions turn out to be accurate. MU is an equity that can keep on giving, and those who hold on for the long term can make the most out of it. The next five to 10 years look promising for Micron stock as the AI industry is rapidly evolving. An investment in the AI sector now could bring in magnitudes of revenue in the next decade.