Micron Know-how, Inc.’s MU shares soared over 200% in 2025, rising as one of many standout S&P 500 performers and simply outpacing Wall Avenue favourite NVIDIA Company NVDA. However does Micron nonetheless have room to develop, and is now the appropriate time to take a position? Let’s see –
Right here’s Why Micron’s Rally Nonetheless Has Legs
Micron’s shares scaled northward in latest instances, pushed by strong quarterly performances as relentless demand for its high-bandwidth reminiscence (HBM) chips surged. These chips are extremely wanted attributable to their skill to course of large information workloads whereas considerably lowering energy consumption.
Micron’s revenues for the fiscal first-quarter 2026 had been $13.64 billion, up 56.8% yr over yr, and greater than analysts’ expectations of round $12.88 billion, as cited in buyers.micron.com. All 4 enterprise segments posted income progress, with the coveted cloud reminiscence enterprise unit reporting gross sales of $5.28 billion, up a stellar 99.5% yr over yr. The sturdy income efficiency pushed Micron’s non-GAAP web earnings to $5.48 billion, or $4.78 per diluted share, comfortably surpassing analysts’ expectations of $3.94.
However the surging demand for HBM chips exhibits no indicators of slowing because it stays briefly provide amid the AI infrastructure growth. This has reassured buyers that Micron’s shares are well-positioned to climb increased, pushed by the sturdy efficiency of its merchandise. Micron, the truth is, expects sturdy outcomes for its fiscal second-quarter 2026, with revenues anticipated between $18.3 billion and $19.1 billion, and diluted earnings per share (EPS) estimated at $8.22 to $8.62.
The HBM market itself is anticipated to develop considerably, and that bodes nicely for Micron’s progress prospects. Based on Market Progress Reviews, the HBM market is anticipated to witness a CAGR of 25.5% to $7,721.41 million by 2035 from $1,516.31 million in 2026. Moreover, Micron reported a file money circulate of $3.9 billion in its fiscal first-quarter 2026, giving the corporate substantial sources to gas future progress initiatives.
From a technical perspective, Micron’s shares are presently buying and selling nicely above the long-term 200-day shifting common (DMA) and the short-term 50 DMA, signaling an uptrend.
Picture Supply: Zacks Funding Analysis
Micron Stays a Discounted Robust Purchase
With Micron’s shares well-positioned to climb on sturdy demand for HBM chips and wholesome money circulate positioning, it is prudent for astute buyers to purchase the inventory now. And why not? The inventory buying and selling above key shifting averages positions it for additional positive factors amid the AI-driven reminiscence growth.
What’s extra, Micron remains to be buying and selling at a reduction or stays undervalued. Micron’s ahead price-to-earnings (P/E) ratio of 11.03 is lower than the Laptop-Built-in Programs trade’s common of 17.89. This makes it an alluring progress inventory for buyers with out overpaying.
Picture Supply: Zacks Funding Analysis
At present, Micron has a Zacks Rank #1 (Robust Purchase). You may see the entire record of at this time’s Zacks #1 Rank shares right here.
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Micron Know-how, Inc. (MU) : Free Inventory Evaluation Report
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This text initially printed on Zacks Funding Analysis (zacks.com).
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.
