Micron Soars 171% in Six Months: Is MU Stock Still Worth Buying?

Micron Technology, Inc. MU has delivered a robust 171.4% gain over the past six months. This performance easily beats the broader Zacks Computer and Technology sector, which rose 39.4% in the same period.

Micron stock has also moved ahead of several chip peers, including Advanced Micro Devices AMD, Broadcom AVGO and NVIDIA NVDA. Shares of Advanced Micro Devices, Broadcom and NVIDIA have gained 129.1%, 99.4% and 67.9%, respectively.

Micron 6-Month Price Return Performance

This outperformance shows investors are increasingly confident in Micron’s long-term story, even during 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 Fueling Micron’s Growth Engine

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.

Micron’s Resilient Financial Performance

Despite ongoing macroeconomic challenges, geopolitical issues, and trade and tariff wars, Micron’s financials remain rock solid. In fiscal 2025, revenues jumped 48.9% year over year, while non-GAAP earnings per share (EPS) rose more than sixfold to $8.29 from $1.30 in fiscal 2024.

The company reported a non-GAAP gross margin of 40.9%, a robust improvement from 23.7% in fiscal 2024. Non-GAAP operating income increased to $10.85 billion from $1.94 billion in 2024, reflecting the company’s ability to convert strong revenue growth into bottom-line gains.

Analysts’ expectations for fiscal 2026 depict continued growth momentum for Micron. The Zacks Consensus Estimate for fiscal 2026 revenues and EPS calls for year-over-year growth of 42.5% and 100%, respectively. The consensus mark for fiscal 2026 and 2027 EPS has been revised upward by 27% and 19.1%, respectively, over the past 30 days.

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 11.46, which is significantly lower than the sector average of 28.43. 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, Advanced Micro Devices and NVIDIA. At present, Broadcom, Advanced Micro Devices and NVIDIA trade at P/E multiples of 39.51, 39.23 and 33.18, respectively.

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

Conclusion: 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.

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

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