After Surging 918%, Is Micron Stock Still a Buy? Here's What History Says.

Micron Technology (NASDAQ: MU) has been 1 of the breakout successes successful an different volatile twelvemonth for artificial quality (AI) stocks.

The semiconductor institution -- which makes high-bandwidth representation (HBM) chips and solid-state drives for AI accelerators, information centers, computers, automotive systems, and smartphones, among others -- has been connected a rocket ride.

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The banal soared to $1,079 per stock connected June 3, up 278% from the commencement of the twelvemonth and up a staggering 918% implicit the past 12 months.

As 1 of conscionable a fistful of leaders successful providing HBM chips for information centers and AI accelerators, Micron has been successful precocious request arsenic the detonation successful information centers has facilitated the request for representation chips. Micron has already sold retired of its HBM chips for 2026, and the monolithic request has allowed Micron to rise its prices, which has led to surging gross and margins.

In the astir caller 4th (Q2 2026), Micron's gross surged 195% twelvemonth implicit twelvemonth to $23.9 billion. Just successful the 4th alone, gross spiked 76% from the erstwhile quarter. Its gross borderline successful the unreality representation concern accrued to 74%, up from 55% successful the aforesaid 4th a twelvemonth ago. Within the information halfway space, it was besides 74%, up from 47%.

In the upcoming fiscal 3rd quarter, Micron anticipates gross of $33.5 billion, which would beryllium up 40% from the past quarter. The gross borderline is expected to spike to 81%, and net are targeted astatine $18.90 per share, up from $12.07 per stock past quarter.

Micron is inactive a bully worth

It's benignant of hard to judge that Micron remains not conscionable a bully buy, but a bully value, adjacent aft a 900%-plus increase.

It became an adjacent amended bargain connected June 5, erstwhile the banal tanked astir 12%, down to $874 per share. The bully quality is that it truly didn't person thing to bash with Micron -- it was much spillover from the market's antagonistic absorption to Broadcom's caller net report. This study bushed estimates, but its guidance for maturation was a small little than investors expected. There was besides immoderate absorption to a beardown jobs report, which meant that the lawsuit for lowering rates got harder to make.

More than anything, it whitethorn beryllium successful narration to investors seeing tech and AI stocks astatine super-high valuations and deciding to currency out.

But Micron is that uncommon AI banal that is inactive a bargain adjacent aft its meteoric growth. Now, aft this 12% sell-off, itʻs an adjacent amended deal. That's a testament to the company's ridiculous net power. It got adjacent stronger erstwhile Nvidia confirmed that Micron volition beryllium an HBM representation spot supplier for its Vera Rubin AI spot architecture.