1 Simple Reason to Buy Micron Stock Right Now

Market Impact - The stock market decline following U.S. President Trump's tariff announcement has impacted nearly every industry, with fears of a potential global recession due to the escalating trade war [1] - Semiconductor stocks have seen significant drops, with investors concerned about both cyclical risks and tariff effects, despite "bare die" semiconductors being exempt from tariffs [2] Semiconductor Sector Performance - The Van Eck Semiconductor ETF fell by as much as 16% after the tariff announcement, a sharper decline than the Nasdaq Composite, reversing a strong performance driven by AI demand [3] - Micron Technology is highlighted as an attractive investment opportunity due to its significant price drop, despite its strong fundamentals [3] Micron Technology Overview - Micron reported a 38% growth in revenue to $8.05 billion in the fiscal second quarter, driven by strong AI demand and record data center DRAM revenue [4] - The proportion of revenue from data center and networking increased from 25% to 55%, indicating substantial growth [5] - Micron benefits from being a domestic manufacturer with U.S. production facilities, receiving over $6 billion from the CHIPS Act, and is currently building the largest chip fab in U.S. history [6][7] Historical Context and Current Valuation - Micron's stock price of $65.54 is comparable to its pre-AI boom levels, despite the company now being in a healthier position with strong AI tailwinds [8] - In fiscal 2023, Micron's revenue fell to $15.54 billion, with an adjusted loss of $4.86 billion, contrasting sharply with its current growth trajectory [9] - The stock trades at a price-to-earnings ratio of 13, suggesting it is undervalued, especially given the ongoing AI momentum [10] Long-term Outlook - Despite potential volatility due to tariffs, Micron is positioned as a long-term winner, benefiting from AI demand and recent business growth [11]