Micron Hits New 52-Week High: Is the Stock Still Worth Buying?

Micron Technology, Inc. MU has had a remarkable run so far this year, with its shares hitting a new 52-week high of $158.28 last Friday. The stock has been a key beneficiary of the artificial intelligence (AI) boom, which has driven strong demand for its memory chips.

Year to date, Micron shares have soared 86.8%, outperforming the Zacks Computer and Technology sector’s gain of 18.8%. It has even outpaced major chipmakers, including Broadcom Inc. AVGO, NVIDIA Corporation NVDA and Advanced Micro Devices, Inc. AMD. Shares of Broadcom, NVIDIA and Advanced Micro Devices have rallied 55.2%, 32.4% and 31.3%, respectively.

Micron YTD Price Return Performance

This outperformance shows investors are becoming increasingly confident in Micron’s long-term prospects, even in a volatile market shaped by trade conflicts and geopolitical risks. We believe this momentum is grounded in strong fundamentals, and MU’s long-term outlook justifies a buy position for now.

New Tech Trends Fuel Multi-Year Growth Tailwinds for Micron

Micron sits at the heart of several transformative tech trends. Its exposure to AI, high-performance data centers, autonomous vehicles and industrial IoT uniquely positions the company for sustainable long-term growth. As AI adoption accelerates, the demand for advanced memory solutions like DRAM and NAND is soaring. Micron’s investments in next-gen DRAM and 3D NAND ensure it remains competitive in delivering the performance needed for modern computing.

The company’s diversification strategy is also bearing fruit. Micron has created a more stable revenue base by shifting its focus away from the more volatile consumer electronics market and toward resilient verticals such as automotive and enterprise IT. This balance enhances its ability to weather cyclical downturns, a critical trait in the semiconductor space.

Micron is also riding on a strong wave in high-bandwidth memory (HBM) demand. Its HBM3E products are attracting significant interest for their superior energy efficiency and bandwidth, which are ideal for AI workloads. In January 2025, NVIDIA confirmed that Micron is a core HBM supplier for its GeForce RTX 50 Blackwell GPUs, signaling deep integration in the AI supply chain. Additionally, its newly announced HBM advanced packaging facility in Singapore, set to launch in 2026 with further expansion in 2027, underscores the company’s commitment to scaling production for AI-driven markets.

The continuously evolving new tech trends and diversification strategy are likely to aid Micron’s growth over the long run. The Zacks Consensus Estimate for fiscal 2026 revenues and EPS indicates a year-over-year jump of 33.9% and 60.7%, respectively.

Micron’s Low Valuation Supports a Buy Strategy

Despite its strong growth, Micron stock still looks reasonably priced. It trades at a forward 12-month price-to-earnings (P/E) multiple of 11.95, which is significantly lower than the sector average of 28.69. This discount adds to the appeal for long-term investors.

Micron Forward 12-Month P/E Ratio

Compared with other semiconductor players, Micron has a lower P/E multiple than Broadcom, NVIDIA and Advanced Micro Devices. At present, Broadcom, NVIDIA and Advanced Micro Devices trade at P/E multiples of 41.07, 32.17 and 29.78, respectively.

Given its exposure to AI growth, Micron’s relative valuation strengthens the case for buying the stock.

Final Thoughts: Buy Micron Stock for Now

Micron’s fundamentals remain strong, and its position in the AI-driven memory market is well-established. The company offers compelling long-term growth potential, maintains a disciplined approach to innovation and trades at a discount relative to peers. Considering these factors, it is prudent to accumulate MU stock.

Currently, MU sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research