Micron Technology Stock Soars: Is It Time to Invest?

Micron Technology (NASDAQ: MU) has been lighting up the stock market board, with a 5% surge today, marking it as the standout performer among major chip stocks. The tech giant’s stock has already climbed 102% over the past five years, although it remains 23% below its mid-2024 highs. The current rally, spurred by renewed interest in semiconductor companies, sees MU stock up 68% from its April low.

According to Money Morning, UBS has raised its price target to $120, catalyzing today’s bullish move.

The Micron Resurgence

The semiconductor sector is experiencing a notable revival, with Micron joining the momentum-driven rally. However, the stock remains well below its former peak, suggesting room for growth. Enthusiasm for AI technologies is one of the driving forces behind this surge, particularly given Micron’s introduction of the world’s first 1-gamma LPDDR5X. This innovative release is poised to enhance on-device AI capabilities in smartphones and PCs, solidifying Micron’s technological superiority.

Investors are holding their breath for the fiscal Q3 earnings report scheduled for June 25. Analysts forecast a sequential revenue increase, propelled by a rising demand for high-bandwidth memory (HBM). Should these numbers align with expectations, Micron could potentially surpass UBS’s target even before the summer’s end.

The Investment Perspective

With the semiconductor industry’s down cycle seemingly resolved, Micron’s upside potential appears robust, underpinned by the continuing AI-driven rally. The company’s positioning may be further bolstered by tariffs, as its main competitors—Samsung and SK Hynix—are overseas.

Trading at a mere 10 times forecasted FY 2026 earnings, Micron still awaits the full realization of the AI tailwind in its pricing. Future EPS is projected to grow by an impressive 97% annually over the decade, coupled with a 22% yearly revenue increase. These metrics argue for a higher premium, painting MU stock as a promising long-term investment.

Conclusion: A Promising Prospect

For those considering an entry into the tech sector, Micron presents a compelling opportunity. Its alignment with burgeoning AI trends and competitive pricing versus growth potential positions it as a worthwhile consideration for long-term investors. Whether you decide to hold your position or dive in anew, Micron’s journey through the semiconductor revival may just add a shine to your portfolio.