What Is One of the Best Semiconductor Stocks to Buy Right Now?

Core Viewpoint - Micron Technology's stock has increased by 167% year to date, with significant upside potential in the coming years due to its strong positioning in the AI data center market [1]. Group 1: Financial Performance - Micron's revenue surged by 49% year over year in the recent quarter, leading to improved margins [3]. - Adjusted earnings per share are projected to reach $8.29 in fiscal 2025, a substantial increase from $1.30 in fiscal 2024 [3]. Group 2: Market Demand and Supply Strategy - The growing demand for data center capacity is driving the limited supply of Micron's high-bandwidth memory (HBM), with management expecting to sell out the remaining HBM supply for calendar 2026 soon [4]. - Despite high demand, Micron is not increasing supply aggressively, opting for a disciplined inventory strategy to maintain margins, which is expected to enhance profitability in the coming years [5]. Group 3: Valuation and Investment Potential - The stock is currently trading at just 13 times fiscal 2026 earnings estimates, suggesting it may be undervalued relative to its opportunities in AI data centers [6]. - Micron is considered a promising semiconductor stock with significant upside potential related to AI, driven by record revenue and earnings growth [8].