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Micron Trades Near 52-Week High: Is the Stock Still Worth Buying?

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Key Takeaways

  • Micron shares are up 45% YTD, trading just 6% below their 52-week high of $129.82.
  • MU is riding on AI, HBM demand, and diversification into automotive and enterprise IT.
  • Micron trades at a P/S of 2.79X, well below sector peers, supporting a buy case.

Micron Technology, Inc. (MU - Free Report) has had a remarkable run this year, with its shares currently trading near the 52-week high. At the closing price of $122.05 as of Aug. 19, the stock is trading just 6% below the 52-week high of $129.82.

Year to date, Micron shares have soared 45%, outperforming the Zacks Computer and Technology sector’s gain of 13.8%. MU has even outpaced major chipmakers, including Advanced Micro Devices, Inc. (AMD - Free Report) , NVIDIA Corporation (NVDA - Free Report) and Broadcom Inc. (AVGO - Free Report) . Shares of Advanced Micro Devices, NVIDIA and Broadcom have soared 37.2%, 31.1% and 27.2%, respectively.

YTD Price Return Performance

Zacks Investment Research
Image Source: Zacks Investment Research

This outperformance shows investors are becoming increasingly confident in Micron’s long-term story, even in a volatile market shaped by trade conflicts and geopolitical risks. We believe this momentum is grounded in strong fundamentals, and MU’s long-term outlook justifies a buy position for now.

New Tech Trends Fuel Multi-Year Growth for Micron

Micron sits at the heart of several transformative tech trends. Its exposure to artificial intelligence (AI), high-performance data centers, autonomous vehicles and industrial IoT uniquely positions the company for sustainable long-term growth. As AI adoption accelerates, the demand for advanced memory solutions like DRAM and NAND is soaring. Micron’s investments in next-gen DRAM and 3D NAND ensure it remains competitive in delivering the performance needed for modern computing.

The company’s diversification strategy is also bearing fruit. Micron has created a more stable revenue base by shifting its focus away from the more volatile consumer electronics market and toward resilient verticals such as automotive and enterprise IT. This balance enhances its ability to weather cyclical downturns, a critical trait in the semiconductor space.

Micron is also riding on a strong wave in high-bandwidth memory (HBM) demand. Its HBM3E products are attracting significant interest for their superior energy efficiency and bandwidth, ideal for AI workloads. In January 2025, NVIDIA confirmed that Micron is a core HBM supplier for its GeForce RTX 50 Blackwell GPUs, signaling deep integration in the AI supply chain. Additionally, its newly announced HBM advanced packaging facility in Singapore, set to launch in 2026 with further expansion in 2027, underscores the company’s commitment to scaling production for AI-driven markets.

The continuously evolving new tech trends and diversification strategy are likely to aid Micron’s growth over the long run. The Zacks Consensus Estimate for fiscal 2025 and 2026 revenues indicates a year-over-year jump of 47% and 34%, respectively. The consensus mark for EPS suggests a robust year-over-year improvement of 518% for fiscal 2025 and 62% for fiscal 2026.

Zacks Investment Research
Image Source: Zacks Investment Research

Undervaluation Supports a Buy Strategy for MU

Despite its strong growth, Micron stock still looks reasonably priced. It trades at a forward 12-month price-to-sales (P/S) multiple of 2.78, which is significantly lower than the sector average of 6.74. This discount adds to the appeal for long-term investors.

Forward 12-Month P/S Ratio

Zacks Investment Research
Image Source: Zacks Investment Research

Compared with other semiconductor players, Micron has a lower P/S multiple than Advanced Micro Devices, NVIDIA and Broadcom. At present, Advanced Micro Devices, NVIDIA and Broadcom trade at P/S multiples of 7.4, 18.87 and 19.07, respectively.

Given its exposure to AI growth, Micron’s relative valuation strengthens the case for buying the stock.

Conclusion: Buy Micron Stock for Now

Micron’s fundamentals remain strong, and its position in the AI-driven memory market is well-established. The company offers compelling long-term growth potential, maintains a disciplined approach to innovation and trades at a discount relative to peers. Considering these factors, it is prudent to accumulate MU stock.

Currently, MU sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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