This Artificial Intelligence (AI) Stock Has Jumped 30% Already in 2025. It Could Jump Another 32%, According to Wall Street.

Stock Performance and Analyst Sentiment - Micron Technology shares have gained 30% in 2025, outperforming the PHLX Semiconductor Sector index's 8% gain [1] - The stock has a 12-month median price target of $145, representing a potential upside of 32$8.7 billion [11] - The company posted an adjusted profit of $1.79 per share in Q1 2025, compared to a loss of$0.95 per share in the same quarter last year [11] - Q2 2025 revenue guidance of $7.7 billion to$8.1 billion missed the consensus estimate of $8.97 billion [4] - Q2 2025 EPS guidance of$1.33 to $1.53 was lower than the Wall Street estimate of$1.77 [4] - Despite the guidance miss, Q2 2025 revenue guidance still represents a 36% year-over-year increase [12] HBM Market and Data Center Growth - Micron's high-bandwidth memory (HBM) chips have been selected by Nvidia for its Blackwell AI GPUs and consumer-grade graphics cards [9] - The company has started volume shipments of HBM to a second customer and expects to begin shipments to a third customer in Q1 2025 [10] - The HBM market is expected to generate $30 billion in revenue in 2025, up from$16 billion in 2024, with a projected $100 billion market by 2030 [10] - Data center revenue increased 400% year-over-year in fiscal Q1 2025 [8] Valuation and Growth Prospects - Micron is trading at 30 times trailing earnings, with a forward earnings multiple of 14 [13] - Analysts expect earnings to jump 584% in the current fiscal year, followed by a 44% increase in the next fiscal year [13] - The company's attractive valuation and rapid growth make it a solid buy despite its recent run-up [12][13]