Is Top-Ranked Micron the Best AI Stock to Buy Now?

Artificial intelligence chipmaker Micron Technology, Inc. MU stock has soared 95% in the past three months. The AI stock’s recent rally helped Micron blow past its previous highs, on its way to becoming one of the best-performing S&P 500 stocks on Wall Street in 2025.

The memory chip powerhouse’s AI-boosted growth is staggering. Micron posted 49% revenue growth in FY25 (period ended in August) and roughly 1,000% earnings growth.

MU’s beat-and-raise Q4 report in late September sent its EPS estimates surging for FY26 and FY27 as the AI arms race heats up. Its upbeat EPS revisions earn MU a Zacks Rank #1 (Strong Buy).

Micron’s standing as the only U.S.-based memory chip manufacturer enhances its long-term bull case as the U.S. races to dominate AI and build the most cutting-edge chips domestically.

All the headlines about the AI bubble might not apply to Micron, considering MU appears to be one of the best value stocks in all of AI. Micron is trading at a roughly 50% discount to Tech (15.1X vs. 29.2X) despite tripling the sector over the past decade, up 1,500%.

Buy AI Stock Micron and Hold Forever?

Micron is one of the giants of memory and storage chips. MU’s DRAM and NAND offerings have long been critical components in everything from smartphones to data centers. The semiconductor memory solutions standout more than doubled its revenue between 2010 and 2020, well before the AI boom.

The memory space had, however, been one of the most boom-and-bust-prone parts of an already cyclical semiconductor industry.

Micron’s revenue often fluctuated alongside consumer spending and production cycles across smartphones, PCs, laptops, vehicles, and more. The rapid expansion of AI data centers and the growing AI arms race could see Micron become more untethered from that dreaded historical cycle.

Micron is a compelling long-term AI investment because it is a leader in high-bandwidth memory (HBM), which is critical for AI workloads. MU works directly with AI chip powerhouse Nvidia and NVDA’s closest rival, AMD. Micron’s CEO has said that AI will drive record memory chip demand.

The memory chip stock is expanding its manufacturing footprint in the U.S. as part of the larger reshoring boom. Micron is a vertically integrated semiconductor company, meaning it designs, manufactures, and tests most of its chips in-house, unlike fabless companies such as Nvidia NVDA that outsource manufacturing to foundries such as Taiwan Semiconductor TSM.

Micron’s AI-Boosted Growth

Micron posted record revenue and earnings in FY25, driven in larger part by the AI spending boom. It grew its revenue by 49% last year to a new record of $37.37 billion (easily topping its previous ~$30 billion from FY22 and FY18) after 62% expansion in FY24.

MU is projected to grow its revenue by 42% in FY26 and 14% in FY27 to hit $60.71 billion as it “capitalizes on the AI opportunity ahead.”

Micron grew its GAAP earnings per share (EPS) by 1,016% last year and its adjusted EPS by 540%. The company’s beat-and-raise Q4 report sent analysts racing to raise their 2026 and 2027 estimates, with its FY26 Zacks consensus up 24% and 19% for 2027.

The upbeat EPS revisions earn it a Zacks Rank #1 (Strong Buy). It has also topped our EPS estimates in 18 out of the past 20 quarters, including a 10% average beat in the trailing four quarters.

This backdrop is a big reason why 27 of the 37 brokerage recommendations Zacks has are “Strong Buys,” alongside five “Buys” and five “Holds” (meaning zero Sells).

Buy the AI Chip Stock for Value and Upside

Micron shares have soared 145% in the last 12 months to crush tech’s 28%, Nvidia’s 33% and Taiwan Semiconductor’s 56%. Its 95% charge in the past three months helped it break meaningfully above its June 2024 highs into a new trading range, which is also miles above its dot.com peaks.

The stock does appear overheated in the short run alongside plenty of other AI stocks and the broader tech sector. MU trades well above its 21-week moving average and at some of its most overbought RSI levels in the past decade.

Micron might be overheated on a technical front, but its valuation levels tell a different story. Micron trades at a nearly 50% discount to Tech and at an even larger discount to its own 10-year highs at 15.1X forward 12-month earnings. For reference, Taiwan Semiconductor trades at 24.3X forward earnings with Nvidia at 34.6X.

Therefore, some investors might want to wait for a pullback before they consider buying Micron at these levels. 

Traders could want to wait for a pullback to their favorite technical indicators before buying the AI chip standout. Waiting for Nvidia’s report and Wall Street’s reaction on November 19 might also be prudent.

That said, playing the market timing game is no easy task. Long-term investors can dip their toes in now and then buy more Micron the next time it goes on sale. 

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

Zacks Investment Research