Micron Has Tripled in 2025 - Still a Discounted Strong Buy

Core Insights - Micron Technology, Inc.'s shares increased over 200% in 2025, outperforming NVIDIA Corporation, driven by strong demand for high-bandwidth memory (HBM) chips [1][7] - The company reported fiscal Q1 2026 revenues of $13.64 billion, a 56.8% year-over-year increase, exceeding analysts' expectations [2][7] - Micron anticipates strong fiscal Q2 2026 results, with projected revenues between $18.3 billion and $19.1 billion and diluted EPS estimated at $8.22 to $8.62 [3] Revenue Performance - All four business segments of Micron experienced revenue growth, with the cloud memory business unit achieving sales of $5.28 billion, up 99.5% year-over-year [2] - Micron's non-GAAP net income reached $5.48 billion, or $4.78 per diluted share, surpassing analysts' expectations of $3.94 [2] Market Outlook - The HBM market is expected to grow at a CAGR of 25.5%, reaching $7,721.41 million by 2035 from $1,516.31 million in 2026, indicating strong growth prospects for Micron [4] - The company reported a record cash flow of $3.9 billion in fiscal Q1 2026, providing substantial resources for future growth initiatives [4] Technical Analysis - Micron's shares are trading above both the long-term 200-day moving average and the short-term 50-day moving average, indicating an uptrend [5] Investment Consideration - Micron is considered a strong buy, with shares positioned for further gains amid the AI-driven memory boom [8] - The company's forward price-to-earnings (P/E) ratio of 11.03 is below the industry average of 17.89, making it an attractive growth stock [9]