Micron Technology(NASDAQ: MU) is a leading supplier of memory and storage chips that have become crucial components in the artificial intelligence (AI) hardware story. Despite its stock plunging 12% after reporting strong financial results for its fiscal 2025 first quarter, investors should consider adding Micron to their portfolio for the new year.
The company’s data center revenue soared by 400% year over year to $4.4 billion, accounting for over 50% of total revenue for the first time. This growth is driven by AI workloads requiring higher memory capacities, which Micron’s HBM3E solutions excel at providing. The technology enables significant memory capacity while consuming less energy.
Micron’s stock has received a consensus buy rating from Wall Street analysts, with an average price target of $146.82, implying a potential upside of 61% over the next 12 to 18 months. This is a 65% discount compared to Nvidia(NASDAQ: NVDA), which has a forward P/E ratio of 29.6.
The AI opportunity in Micron’s data center segment is significant, with market growth predicted to reach $100 billion by 2030. However, the company also has opportunities in the smartphone and personal computing segments, driven by increasing demand for higher DRAM capacity.
With an incredible growth rate in its data center segment and a potential for further expansion into other areas, Micron Technology is an attractive investment opportunity for those seeking value in the booming AI semiconductor space.
Source: https://finance.yahoo.com/news/1-super-semiconductor-stock-buy-102500904.html