AI-Driven Demand Supports Micron (MU)'s Margin Expansion

Chautauqua Capital Management, a division of Baird Asset Management, is a boutique investment firm that released its fourth-quarter 2025 investor letter for the “Baird Chautauqua International and Global Growth Fund”. A copy of the letter can be downloaded here. Global equities finished 2025 strongly, with international markets delivering their widest outperformance versus U.S. equities since the Global Financial Crisis, aided by a weaker dollar and improving trade conditions. In Q4 2025, the Baird Chautauqua International Growth Fund returned +0.11%, lagging the MSCI ACWI ex-U.S. Index’s +5.05%, while the Global Growth Fund gained +4.18%, outperforming its MSCI ACWI Index® ND’s +3.29%, as value and cyclical leadership weighed on growth-oriented portfolios. Despite near-term headwinds from sector rotations and Greater China profit-taking, the fund remains focused on high-quality businesses with strong cash flows and balance sheets, supported by attractive international valuations and a more favorable macro backdrop heading into 2026. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Baird Chautauqua International and Global Growth Funds highlighted stocks such as Micron Technology, Inc. (NASDAQ:MU). Micron Technology, Inc. (NASDAQ:MU) is a leading memory and storage semiconductor manufacturer, benefiting from cyclical recovery and long-term demand driven by AI, data centers, and advanced computing. Micron Technology, Inc. (NASDAQ:MU) was among the largest contributors to the Global Growth Fund. The one-month return of Micron Technology, Inc. (NASDAQ:MU) was approximately 37.89%, and its shares have gained about 37.89% of their value over the last 52 weeks. On January 26, 2026, Micron Technology, Inc. (NASDAQ:MU) stock closed at approximately $389.09 per share, with a market capitalization of about $456.726 billion.

Baird Chautauqua International and Global Growth Funds stated the following regarding Micron Technology, Inc. (NASDAQ:MU):

"Micron Technology, Inc. (NASDAQ:MU) reported strong FY4Q25 results and raised its 1Q guidance for revenues, earnings, and margins, reflecting improved pricing, particularly in DRAM. Demand continues to outpace supply, with pricing up sequentially in both DRAM and NAND. Management sees tightness in supply across CY26."

Micron Technology, Inc. (NASDAQ:MU) is in the 20th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 105 hedge fund portfolios held Micron Technology, Inc. (NASDAQ:MU) at the end of the third quarter, which was 94 in the previous quarter. While we acknowledge the risk and potential of Micron Technology, Inc. (NASDAQ:MU) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Micron Technology, Inc. (NASDAQ:MU) and shared the trending AI stocks on Wall Street. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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