Micron Technology, a computer memory and storage specialist, has seen explosive gains due to generative artificial intelligence increasing demand for its data storage solutions. Analyst upgrades and raised guidance have boosted the stock by 186% this year, but questions remain if the positive changes are already priced in.

Data centers will require $6.7 trillion in global capital expenditures to keep up with AI demand, benefiting companies like Micron specialized in high-capacity memory solutions. Government support, including $6.1 billion in funding and tax breaks, is propelling Micron’s growth in the U.S.

Micron’s fiscal 2025 sales hit an all-time high of $37.5 billion with a gross margin of 41%, reflecting strong pricing power and technological edge. Rising demand for AI-related hardware could lead to a supply squeeze, driving further margin expansion as Micron raises prices to meet demand.

Micron is not only leveraging AI for sales growth but also internally for product design and manufacturing, resulting in significant productivity increases. With a forward P/E multiple of 16, Micron remains a compelling buy as data center demand rises, promising profitability and long-term growth potential.

Read more at Yahoo Finance: Is Micron Technology a Millionaire-Maker Stock?