Is Micron Technology (NASDAQ: MU) poised to continue its impressive run? Up a staggering 167% year-to-date, this memory chip supplier is turning heads. But is there still room to grow, or have investors missed the boat? Let’s dive into why some analysts believe Micron is just getting started, especially with the AI boom in full swing.
The company is riding high on record revenue, fueled by the ever-increasing demand for high-bandwidth memory (HBM) driven by the explosive growth of AI data centers. Management emphasized that this AI buildout is a multi-year trend, placing Micron in a prime position to capitalize.
## Riding the AI Wave
Micron’s recent performance speaks volumes. Revenue surged 49% year-over-year, significantly boosting margins. Adjusted earnings per share are projected to explode, jumping from $1.30 in fiscal 2024 to a whopping $8.29 in fiscal 2025. This growth is directly linked to the insatiable need for data center capacity, which in turn drives demand for Micron’s HBM. In fact, the company anticipates selling out its entire HBM supply for calendar year 2026 soon!
## Undervalued Potential?
What’s particularly interesting is Micron’s strategic approach. Rather than flooding the market to maximize short-term gains, the company is maintaining a disciplined inventory strategy. This focus on profitability is expected to drive record earnings in the coming years, creating a compelling growth narrative that might not be fully reflected in the stock’s current valuation.
Currently, Micron trades at approximately 13 times its estimated fiscal 2026 earnings. This suggests that the market may be undervaluing the company’s long-term potential in the AI data center space.
## Before You Invest
While Micron appears promising, remember that even the most promising stocks carry risk. It’s crucial to conduct your own thorough research and consider your individual investment goals before making any decisions. Consider exploring recommendations from reputable sources like Motley Fool Stock Advisor. They have identified other top stocks, which have historically delivered significant returns and may present compelling opportunities as well. Ultimately, informed investing is key to long-term success.
