Analyst Highlights the Nvidia Link in Micron (MU) Business, Says It's 'The Most Important Takeaway'

We recently published 10 Buzzing Tech and AI Stocks Everyone’s Talking About. Micron Technology Inc. (NASDAQ:MU) is one of the stocks analysts were recently talking about.

Mehdi Hosseini, senior equity research analyst at Susquehanna, said in a latest program on CNBC that Nvidia “has to buy” from Micron, and this places the memory company in a strong position in terms of pricing power.

“I think the most important takeaway here, which I don’t think Sanjay (Micron CEO) is going to elaborate on a live interview, is who is actually doing a lot of buying. Unlike prior cycles, which were driven by distributors and the OEMs and ODMs, this cycle it is Nvidia, it is AMD, it is Broadcom that are actually doing the buying. And when you look at the AI, what Nvidia charges, which is about 80% of the AI server, the majority of that is going towards memory. So it is Nvidia that has to buy from Micron Technology Inc (NASDAQ:MU), and this is what gives Sanjay pricing power. The future of AI compute requires advanced memory, and that’s where the premium comes in, which is why this cycle is sustainable throughout 2016 and may even sustain into 2027.”

Parnassus Investments, an investment management firm that focuses on owning a concentrated portfolio of U.S. large-cap stocks, released its Parnassus Value Equity Fund second-quarter 2025 investor letter. Here is what they have to say about Micron Technology Inc. (NASDAQ:MU) in their investor letter:

“Micron Technology Inc. (NASDAQ:MU) shares advanced due to the company’s strong position in the AI-driven memory market. Management noted robust demand in its latest quarter.”

While we acknowledge the potential of MU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.