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1 No-Brainer Artificial Intelligence (AI) Stock to Buy Before It Skyrockets
MUMicron Technology(MU) The Motley Fool·2025-03-28 21:00

Core Viewpoint - Micron Technology's stock has shown significant volatility in 2025 but is up 15% year-to-date, with strong fiscal Q2 results indicating potential for further growth [1][2]. Financial Performance - Micron's fiscal Q2 revenue increased by 38% year-over-year, with non-GAAP earnings rising 3.7 times to 1.56pershare,surpassingWallStreetexpectations[4][2].−Thecompany′stotalquarterlyrevenueexceeded1.56 per share, surpassing Wall Street expectations [4][2]. - The company's total quarterly revenue exceeded 8 billion, driven by record sales of DRAM chips [5]. Demand Drivers - Demand for Micron's high-bandwidth memory (HBM) chips, particularly in AI data centers, has surged, with HBM sales increasing by 50% sequentially, generating over 1billioninrevenue[5][4].−ThecompanyhassoldoutitsentireHBMcapacityfor2025andanticipatescontinuedstrongdemandinto2026[7][8].GrowthProspects−MicronisexpandingitsHBMproductioncapacityandhasbegunconstructiononanewfacilityinSingapore,indicatingacommitmenttomeetgrowingdemand[8].−Thetotaladdressablemarket(TAM)forHBMin2025hasbeenrevisedupwardto1 billion in revenue [5][4]. - The company has sold out its entire HBM capacity for 2025 and anticipates continued strong demand into 2026 [7][8]. Growth Prospects - Micron is expanding its HBM production capacity and has begun construction on a new facility in Singapore, indicating a commitment to meet growing demand [8]. - The total addressable market (TAM) for HBM in 2025 has been revised upward to 35 billion, with projections suggesting a potential 130billionannualrevenuefortheglobalHBMmarketby2033[8].FutureGuidance−Micronexpectsa29130 billion annual revenue for the global HBM market by 2033 [8]. Future Guidance - Micron expects a 29% revenue increase in the current quarter compared to the previous year, with earnings forecasted to rise by 153% to 1.57 per share [9]. - The company's attractive valuation, trading at 29 times trailing earnings and 14 times forward earnings, positions it favorably compared to the Nasdaq-100 index [10]. Investment Outlook - Given the strong growth and solid prospects in the HBM market, Micron Technology is considered a top stock to buy at this time [11].