When someone mentions artificial intelligence, most likely, Nvidia is the company that enters your mind first. And it shows – their GPUs are driving the growth of AI technologies. But perhaps I can show you another semiconductor stock that has a strong role in AI and is waiting to explode, thanks to 4 reasons why now is the best time to invest.
Yes, and this company is doing more than merely using AI, as it provides vital parts that AI cannot function without. That said, let’s see why Micron Technology (MU) should not be overlooked while the competition is still being given much of the attention.
Micron's Stocks as of May 20, 2025
1. $6 Billion Allocated for Growing the U.S. Semiconductor Industry
America’s federal government is giving Micron a major advantage. Thanks to the U.S. CHIPS and Science Act, companies are receiving grants and loans totaling $6 billion. This significant amount of money will be used to expand Micron’s domestic chip manufacturing capacity.
Consider how impressive it would be to build exceptional facilities in places as varied as New York and Idaho. This undertaking is costly, and federal money helps Micron manage even expensive, risky projects. This will allow them to make important memory chips within the U.S. which benefits national defense and boosts the company’s future profitability by reducing the financial burden of these massive domestic projects. Not only are laws in their favor, but they also receive billions in extra funds that can fuel their progress.
2. The Unsung Hero of AI: Powering Intelligence Beyond the GPU
Everyone talks about GPUs for AI, but what about the memory they rely on? AI models, especially the large language models fueling generative AI, are absolute data hogs. They need lightning-fast, high-capacity memory to feed those hungry processors. This is where Micron shines.
Micron is a powerhouse in both DRAM (Dynamic Random-Access Memory) and NAND flash memory. But their real edge in the AI era comes from their leadership in High Bandwidth Memory (HBM), specifically HBM3E. This isn't your average RAM; HBM stacks memory chips vertically, allowing for incredibly fast data transfer directly to the AI accelerators. As more powerful AI servers come online, the demand for HBM is exploding. Micron is right there at the forefront, ready to capitalize on this essential piece of the AI puzzle. Without advanced memory like HBM, even the best GPUs would hit a bottleneck, making Micron an indispensable part of the AI revolution.
3. Riding the Memory Market's Powerful Rebound
The memory market is known for its ups and downs. It can be fiercely cyclical, with periods of oversupply leading to price drops. However, the industry has been emerging from one of those downturns, and all signs point to a robust recovery.
Micron, as a leading player, is perfectly positioned to benefit from this rebound. Analysts are projecting significant revenue and profit growth for the company in the coming years. This isn't just wishful thinking; it's based on increasing demand not only from AI but also from data centers, PCs, and smartphones, all requiring more and more memory. After what was a challenging period, Micron is now poised to reap the rewards of tightening supply and surging demand, potentially delivering strong financial performance for investors.
4. A “Dirt Cheap” Valuation for Future Growth
With the help of a large government budget, key AI technology, and a rising market, we believe Micron’s stock remains “dirt cheap.” How so? In most cases, the comparison of a company’s current stock price with its likely future earnings decides its value.
With memory market growth forecasted and Micron aiming to succeed in AI, its current stock price (based on projected 2026 earnings) is quite appealing. As Nvidia’s value has climbed due to its strong position, Micron could end up being a good investment since its memory products are in high demand from the AI sector. As a result, this company stands out to investors interested in growing their investments in the semiconductor sector at a better value.
Thus, even with all the publicity, smart investors are on the hunt for the next potential winner. Because of its support by the U.S. government, crucial function in AI memory, and financial recovery, Micron Technology makes an attractive investment for 4 key reasons beyond its modest share prices. It’s not only a chip company; it is also a major player in AI.
