Micron Technology Sees 90% Stock Surge Amid AI Demand

BOISE, Idaho — Micron Technology, Inc. (MU) has experienced a remarkable stock increase of 90% since early April, and 45% in 2025, reaching critical technical levels. However, the semiconductor company still trades 20% below its June 2024 highs due to a weakened earnings outlook in the seasonal memory segment.

With its upcoming Q3 FY25 earnings release set for June 25, analysts suggest that now is an ideal time to invest in Micron for long-term gains, particularly in artificial intelligence. Micron is known for its high-bandwidth memory chips, which are essential for AI workloads.

The company collaborates closely with Nvidia and AMD, significant players in the AI chip market. Micron’s continual earnings and revenue growth in FY25 and FY26 position it favorably within the tech sector, trading at a discount despite its stock outpacing the sector over the past 20 years.

Micron manufactures DRAM and NAND memory chips vital for devices ranging from smartphones to AI data centers. Over the last two decades, the company’s stock has surged around 1,100%, outperforming Zacks Tech sector’s 770% increase.

Recently, Micron announced a $200 billion investment plan for expanding its U.S. operations, including $150 billion dedicated to memory chip manufacturing. This initiative aims to boost domestic semiconductor production, with plans to produce 40% of its DRAM in the United States.

Despite fluctuations in revenue due to the cyclic nature of the semiconductor industry, the rise of data centers and AI technologies may insulate Micron from traditional business cycle impacts.

Micron’s advanced high-bandwidth memory technologies are critical for AI applications, providing necessary speed and capacity for processing large datasets. The company reported a record revenue for its data center DRAM segment in Q2 FY25, with HBM sales exceeding $1 billion for the first time.

The projection for revenue growth stands at 41% in FY25 and 31% in FY26, pushing revenues to an estimated $46 billion. Adjusted earnings are expected to grow dramatically, jumping 433% in FY25, which highlights the increasing demand for its AI-focused HBM chips.

Though Micron’s earnings per share (EPS) estimates are lower than last year, they have shown improvement since the previous earnings report. Micron has successfully beaten EPS estimates in 18 out of the past 20 quarters.

Currently, Micron’s stock is down 20% from its June 2024 peak, while still trading at a 50% discount compared to the tech sector. This decline occurs even as MU has risen 90% since April and dramatically outperformed technology rivals Nvidia and AMD.

In conclusion, Micron’s performance in the semiconductor market, combined with its strategic investments and innovations in AI technology, places it as a key player for long-term growth. Investors might find the current valuation attractive, as the company aims to continue capitalizing on the burgeoning AI demand.