What Is One of the Best AI Stocks to Own for the Next 5 Years?

Key Points

• Micron Technology just finished a record-breaking 2025 fiscal year, with revenue up 49% and net income up 998%.

• It benefits from increased data center spending, which is projected to reach $1.1 trillion by 2029.

• While Micron's share price has risen significantly this year, it's trading at just 10 times forward earnings.

• 10 stocks we like better than Micron Technology ›

To meet the demands of artificial intelligence (AI) systems, tech companies have been investing heavily in new infrastructure. Micron Technology (NASDAQ: MU) is one of the companies best positioned to benefit from this spending.

Micron produces memory and storage solutions. While AI is known for its processing needs, driving demand for advanced semiconductors, it also requires a substantial amount of memory. Micron's memory chips and other data storage products fill that need, which has led to excellent financial results recently and could make this a high-growth company over the next five years.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Getty Images.

Record numbers with more growth expected

Micron recently reported results for Q4 and its full 2025 fiscal year, which ended on Aug. 28, 2025, and numbers were up across the board. Revenue for the full year was up 49% to a record high of $37.4 billion. Net income increased by 998% from $778 million to $8.5 billion, and earnings per share (EPS) increased 984% to $7.59.

There's clearly growing demand for Micron's memory products, and it's forecasting even better numbers to kick off its 2026 fiscal year. Revenue projections are $12.5 billion in the first quarter, and the EPS projection is $3.56.

The immediate outlook is good for Micron, and the long-term outlook is even better. Tech companies are already spending heavily on AI data centers, with $430 billion invested in 2024, and that's expected to go up to $1.1 trillion by 2029. If data center spending continues to rise as expected, Micron could continue to outperform the market.

This is also a rare AI stock with a fairly low valuation right now. Micron is trading at 21 times earnings and just 10 times forward earnings, making it downright cheap compared to many of its peers. With that valuation, and a strong position in the AI supply chain, Micron is a great company to buy and hold to 2030 and beyond.

Should you invest $1,000 in Micron Technology right now?

Before you buy stock in Micron Technology, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $650,607!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,114,716!*

Now, it’s worth noting Stock Advisor’s total average return is 1,068% — a market-crushing outperformance compared to 190% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of September 29, 2025

Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.