Micron Stock Jumped 24% in a Month: Should You Buy, Sell, or Hold MU?

Core Insights - Micron's stock has surged approximately 24% in a month, significantly outperforming the S&P 500 Index's 1% gain, making it one of the top performers of the year [1] - The rally is driven by strong demand for DRAM and NAND chips, fueled by the expansion of AI-driven data centers and a rebound in consumer hardware like PCs and smartphones [1] Market Conditions - Tightening supply conditions in the memory market have led to increased pricing, which is expected to persist into 2026, providing Micron with opportunities for revenue and margin growth [2] - Samsung Electronics has raised prices on certain memory chips by up to 60% since September, indicating a favorable pricing environment for Micron [4] Financial Performance - In fiscal 2025, Micron's revenue reached a record $37.4 billion, a 50% increase from the previous year, with gross margins expanding to 41%, a 17-percentage-point improvement [3] - The strength in DRAM pricing across various end markets is contributing to Micron's growth in both revenue and profitability [3] Future Outlook - The ongoing investment in AI infrastructure positions Micron to benefit from increased demand for high-performance memory as data centers scale to accommodate more AI workloads [6] - Micron's data center segment accounted for over half of total sales in fiscal 2025, significantly enhancing company-wide gross margins [6] - The structural tailwinds from AI infrastructure and supply-driven pricing strength suggest that Micron's growth trajectory is likely to continue, with solid earnings growth anticipated in fiscal 2026 [5]