Micron stock down 20% despite strong AI potential, presents long-term growth opportunity

From Nasdaq: 2025-06-18 15:48:00

Micron Technology, Inc. MU stock has surged 90% since early April and 45% in 2025, despite trading 20% below its 2024 highs due to a faded earnings outlook in the memory segment. This presents a great opportunity for long-term artificial intelligence growth before Q3 FY25 release on June 25th.

Micron’s leadership in high-bandwidth memory chips critical for AI workloads makes it a compelling long-term AI investment. The company works closely with AI chip powerhouses Nvidia and AMD, with a staggering earnings and revenue growth outlook in FY25 and FY26, trading at a discount to the Tech sector.

The company’s expansion of U.S. investments to $200 billion, including $150 billion for memory chip manufacturing and $50 billion for R&D, aims to boost domestic semiconductor production. Micron’s focus on AI-related infrastructure spending positions it as a key beneficiary of surging AI demand and growth opportunities.

Micron’s projected revenue growth of 41% in FY25 and 31% in FY26, along with a surge in adjusted earnings, showcases its potential for a significant breakout above previous all-time highs. With robust balance sheet, dividends, and a discounted valuation compared to the Tech sector, Micron presents a promising opportunity for long-term AI growth and value.

Five stocks are set to double, handpicked by Zacks experts as favorites to gain +100% or more in the coming year. These stocks provide an opportunity to get in on the ground floor before potential significant growth. Previous recommendations have soared, offering the potential for substantial returns.



Read more at Nasdaq: Buy Nvidia, AMD Supplier Micron Stock Down 20% for AI Growth