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2 of the Hottest Tech Stocks to Buy on the Dip: MU, WDC

A month ago, I covered Micron Technology (MU - Free Report) ) and Western Digital (WDC - Free Report)  as two of the hottest tech stocks to buy on the dip, and both were up over +100% in 2025, respectively.

Reemerging trade tensions between the U.S. and China had led to a broader pullback, with Micron and Western Digital stock standing out as buy-the-dip targets due to high demand for their memory and data storage solutions.

The increasing need for their services has been spurred by the massive growth in AI and cloud infrastructure for data centers, with MU and WDC ripping bullishly higher once President Trump dialed back threats to impose additional tariffs on Chinese goods.  

Fast forward, and now Micron stock is up over +200% year to date, and Western Digital shares aren’t too far behind.  

As an example of blazing tech stocks that continued to reach higher highs, valuation concerns have been the cause of recent market volatility, but it still may be an ideal time to buy the dip in MU and WDC.

Zacks Investment Research
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Following the Trend of EPS Revisions

Amid increased demand for Micron’s high-bandwidth memory chips and Western Digital’s storage drives, the trend of rising earnings estimate revisions details why they have been two of the hottest tech stocks.

In the last 60 days, Micron’s current fiscal 2026 EPS estimates have soared 23% from $13.13 to $16.22. Meanwhile, EPS estimates for Micron’s FY27 have climbed 17% over the last two months from $15.88 to $18.57. Most astonishing is that Micron’s annual earnings are now expected to leap 95% in FY26, with FY27 EPS forecast reflecting another 14% growth.

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Similarly, EPS revisions for Western Digital’s current FY26 have popped 13% in the last 60 days, with FY27 EPS estimates up an eye-popping 37%. Western Digital’s bottom line is now expected to stretch nearly 50% in FY26, with FY27 earnings projected to increase another 33% to $9.84 per share.

Zacks Investment Research
Image Source: Zacks Investment Research

 

Attractive P/E Valuations

What answers the call as to why MU and WDC may still be two of the best tech stocks to buy on the dip is that despite their incredible YTD rallies, they aren’t trading at stretched P/E premiums and actually offer a discount to the benchmark S&P 500’s 25X forward earnings multiple.

Zacks Investment Research
Image Source: Zacks Investment Research

 

Bottom Line

Attributed to what has continued to be a very pleasant trend of positive EPS revisions, Micron Technology and Western Digital stock have held spots on the coveted Zacks Rank #1 (Strong Buy) list since August 20th and October 1st, respectively.

In these time frames on the Zacks Rank #1 (Strong Buy) list, MU is up a stellar +115% with WDC up a very respectable +25%.  


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