What’s the Buzz on Micron?
October 17, 2025
Written by Arjun Shekdar
Micron Technology has a compelling "why buy" case today, combining high-growth drivers, high profitability, and apparently favorable valuation. It has a market cap of approximately $176.56 billion and is rated a "Strong Buy" on the quant models, and it is the top-ranked semiconductor stock (Quant Industry Ranking: 1 of 68; Quant Sector Ranking: 6 of 541).
Micron has positioned itself at the intersection of the convergence of AI, data-centre, and memory. It has aligned its company along divisions such as the "cloud memory business unit" and "core data centre business unit" to serve hyper-scalers and AI workloads. Its high-bandwidth memory (HBM) and low-power DRAM form the backbone in AI servers, inference, and training workloads. Management only recently said bit-demand growth in DRAM is now expected to be in the high teens in 2025. The firm's own website highlights its full range of memory and storage solutions for AI data centers, focusing on performance as much as power efficiency. The result is that revenue and earnings momentum are gathering. For instance, the firm raised Q4 FY25 guidance as AI demand and HBM pricing improved. In short, AI-driven demand tailwinds combined with memory shortages and supply bottlenecks pose Micron with impressive growth opportunities.
As measured by current financial metrics, Micron is trading at around 20× earnings while Nvidia is trading near 40×, and its PEG ratio of 0.22 shows an 88% discount to the industry. Micron has 46% EBITDA margins and significantly reinvests—around 40% of sales—into capex to keep up with technological leadership. Industry reports confirm that Micron is seeing improved pricing power and improved margins in its key product segments. This combination of a healthy margin profile and accelerating momentum is an attractive bet for investors who seek both profitability and growth potential.
Micron's valuation also appears appealing relative to its competitors. The company's reasonable PEG ratio and strong growth prospects—forward EPS growth of around 89%—indicate a lot of room for upside. The consensus expects revenue to rise by around 43% in fiscal year 2025, with solid momentum rolling forward into 2026. Effectively, investors are being charged for a story of growth at a much lower multiple than much of the popular high-flying tech darlings, with a combination of value and exposure to one of the most rapidly expanding niches of the semiconductor space.
Micron also possesses a unique competitive advantage. Its leadership in LPDDR memory for datacenter and low-power usage and its HBM products positions it as a lead supplier to the world's most sophisticated artificial intelligence systems. Its sales of HBM already have surpassed $1 billion quarterly, and it continues to ramp up production to meet surging demand. It even possesses sourced AI- and NAND-demand-driven memory price hikes.
If you’re seeking a semiconductor stock with both strong secular tailwinds (AI, data centers, and memory demand) and a relatively attractive valuation, Micron stands out. Its leadership in high-performance memory markets, expanding margins, and favorable multiple make a persuasive case. While no investment is without risk, Micron’s growth trajectory and positioning in the AI ecosystem make it a standout candidate for a technology-focused portfolio.
