Should You Buy Micron Technology Stock Before Sept. 23?

Core Viewpoint - Nvidia's CEO predicts a $4 trillion investment in data center upgrades over the next five years, primarily driven by AI demand, which will significantly benefit Nvidia and its suppliers like Micron Technology [2][16]. Group 1: Nvidia and Micron's Relationship - Nvidia's advanced GPUs rely heavily on Micron's high-bandwidth memory (HBM), which is crucial for handling AI workloads efficiently [3][6]. - Micron's HBM3E solution is selected for Nvidia's latest GPUs, and the upcoming HBM4 solution promises 60% more performance and 20% less power consumption [7]. Group 2: Micron's Market Opportunities - Micron's AI opportunities extend beyond data centers, as AI-capable chips in PCs and smartphones are driving increased demand for memory solutions [8]. - The requirement for AI-enabled smartphones has risen to a minimum of 12 gigabytes of memory, a 50% increase from non-AI versions, indicating a growing revenue potential for Micron [9]. Group 3: Financial Performance - Micron's revenue for the fiscal 2025 second quarter reached $9.3 billion, a 37% increase year-over-year, with the compute and networking segment contributing $5.1 billion, up 97% [10]. - The company anticipates fourth-quarter revenue of $10.7 billion, reflecting a 38% year-over-year growth rate, with Wall Street estimates suggesting an even higher figure of $11.1 billion [11]. - Non-GAAP EPS for the third quarter was $1.91, a 208% increase from the previous year, with fourth-quarter guidance pointing to $2.50, up 112% [12]. Group 4: Investment Considerations - Micron's stock trades at a P/E ratio of 24, significantly lower than Nvidia's 50, making it an attractive investment option [13]. - The integration of Micron's HBM solutions in both Nvidia and Advanced Micro Devices' GPUs positions Micron favorably in the competitive landscape [14]. - The anticipated $4 trillion investment in AI infrastructure presents a substantial market opportunity for Micron, suggesting it could be a major beneficiary in the chip sector [16].