Micron Technology, Inc. (MU) has seen its stock soar by 171.4% over the past six months, significantly outperforming the broader Zacks Computer and Technology sector, which increased by 39.4% during the same period. Micron has outpaced competitors such as Advanced Micro Devices, Broadcom, and NVIDIA, whose shares rose by 129.1%, 99.4%, and 67.9%, respectively.
Investors are showing increased confidence in Micron’s long-term prospects despite a volatile market affected by trade conflicts and geopolitical risks. The company’s position at the forefront of key tech trends like AI, high-performance data centers, autonomous vehicles, and industrial IoT is fueling sustainable growth. The rising demand for advanced memory solutions such as DRAM and NAND, coupled with Micron’s investments in next-gen technologies, ensures its competitiveness.
Micron’s strategic shift away from the consumer electronics market towards more stable sectors like automotive and enterprise IT has created a steady revenue base, enabling resilience against market fluctuations. Additionally, the company’s advancements in high-bandwidth memory (HBM) are attracting attention, particularly with NVIDIA confirming Micron as a core supplier for its GeForce RTX 50 Blackwell GPUs.
Financially, Micron remains strong despite macroeconomic challenges, with fiscal 2025 revenues up by 48.9% year-over-year and non-GAAP earnings per share soaring to $8.29 from $1.30 in fiscal 2024. The company’s non-GAAP gross margin improved to 40.9%, and operating income rose to $10.85 billion. Analysts anticipate continued growth, with expectations for fiscal 2026 revenues and EPS to increase by 42.5% and 100%, respectively.
Despite robust growth, Micron’s stock is considered reasonably priced with a forward 12-month P/E ratio of 11.46, lower than the sector average of 28.43. This valuation, coupled with its strong fundamentals and position in the AI-driven memory market, makes Micron an attractive option for long-term investors. Currently, Micron holds a Zacks Rank #1 (Strong Buy).
